Let’s Take a Look at the Luxury Market

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.