As Per Cromford Daily Observation – a look at the luxury market, which is here defined as homes that sold for $1 million and more.
|Measurement for Market at $1M plus||1Q 2015||1Q 2016||1Q 2017||Year to Year Change|
|Total Million Dollar Units Closed||347||343||398||up 16%|
|Single Family Units Closed||326||332||348||up 5%|
|Condo / Townhouse Units Closed||21||11||50||up 355%|
|New Units Closed||49||64||97||up 52%|
|Re-sale Units Closed||298||279||301||up 8%|
|Scottsdale Dollar Volume||$285M||$275M||$316M||up 15%|
|Paradise Valley Dollar Volume||$132M||$151M||$171M||up 13%|
|Phoenix Dollar Volume||$77M||$97M||$95M||down 2%|
|Southeast Valley Dollar Volume||$40M||$31M||$32M||up 4%|
|Fountain Hills Dollar Volume||$13M||$16M||$13M||down 21%|
|Cave Creek & Carefree Dollar Volume||$7M||$13M||$19M||up 53%|
|West Valley Dollar Volume||$7M||$5M||$10M||up 122%|
Overall, the first quarter of 2017 was a much busier quarter for million dollar homes than the same period in 2016. Fountain Hills and Phoenix were the only areas that declined. The West Valley, Cave Creek & Carefree saw the greatest percentage growth, but the largest luxury areas (Scottsdale, Paradise Valley) were both up by healthy percentages.
The luxury condo/townhouse sector is where the majority of the growth occurred, jumping from 11 to 50 units, the highest we have seen in any quarter in history. Unit growth in the single-family sector was a relatively modest 5%.
This confirms that despite the healthy increase in volume, there is little pricing power among sellers of luxury homes, thanks to the abundant inventory of active listings. In fact, single family pricing fell by 3% over the last 12 months, but condo/townhouse pricing rose by 6% to an eye-watering $547 per sq. ft. It seems to be the attached “jewel-boxes” (living large on a smaller footprint) where pricing power still resides with the sellers, especially new home sellers.
Call Fitzgerald Luxury Group today for a detailed consultation on the value of your home. We incorporate top-tier marketing to attract the greatest number of qualified buyers and keeping marketplace realities in mind, price your property to help you find the highest possible offer in a timely manner.