Arizona Luxury Home Market Report - High End Homes Market Trends
Let us take a look at how the single-family luxury market fared during the third quarter. We will count homes that were listed for $500,000 or more and closings through ARMLS only. Our comparison period will be the third quarter of 2016.
Looking at active listings excluding those in AWC (Active With Contract) or CCBS (Contract Contingent on Buyer Sale) status as of October 1, the total number declined by 4% from 4,096 to 3,946. The decline was 6% in the price range from $500,000 to $1 million, from 2,667 to 2,508. The price range from $1 million to $2 million increased slightly from 916 to 920 while the price range over $2 million increased 1% from 513 to 518.
Third quarter closings were up a very strong 22% from 1,500 to 1,835. The increase was greatest over $2 million where closings rose 33% from 48 to 64. The range between $1 million and $2 million was next with an increase of 24% from 211 to 262. Between $500,000 and $1 million closings increased 22% from 1,241 to 1,509.
Supply versus Demand:
The price range from $500,000 to $1 million went from 6.5 to 5.0 months of inventory based on the quarterly sales rate
The price range from $1 million to $2 million went from 13.0 to 10.5 months of inventory
The price range over $2 million went from 32.1 to 24.3 months of inventory
Despite a significant improvement in the inventory position, the price range between $500,000 and $1 million only managed a 0.7% increase in average $/SF from $192.47 to $193.89
The price range from $1 million to $2 million fared worse, with the average $/SF dropping 1.2% from $280.84 to $277.39
The price range over $2 million saw a 14.3% decline in average $/SF from $455.43 to $390.34
The overall pricing for single-family homes over $500,000 declined 0.6% from $224.12 to $222.67.
In summary; having said that, some ZIP codes did much better than others. Average $/SF was at least 10% higher in 85018, 85020, 85234, 85250, 85254, 85298, 85377 and 85383 when compared with 3Q 2016. However several of these are ZIP codes with only a small number of luxury sales. The large ZIP codes did not do well, with 85255 down 4% and 85262 down 6%.