For clarification, let’s first define the Luxury Markets:
Homes sold at or above $1,000,000.
The cities where these sales makes up about 10% or more of the total market.
Yes - Phoenix, Gilbert, Mesa, Chandler (and possibly Peoria) have more million-dollar sales than Carefree, but those luxury sales are a fraction of a percentage of the overall market. They are not “luxury market cities” - at least not in my opinion, and I’m the one making the chart!
Now that that’s out of the way, we can talk about the chart:
YTD through October, there have been 24% more million-dollar homes sold than last year, and 43% more than 2 years ago. Wow!
Part of this is because prices have been increasing; homes that were in the $900,000-range last year are now being priced at $1,000,000. But part of this is also because more people are willing and able to spend/invest that much money in their house.
I don’t want to sound pessimistic and bearish, but what’s the upward limit on luxury homes in the Greater Phoenix area, and will this rising tide continue to lift all boats?
- Chris Butterworth
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* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.