Paradise Valley

Paradise Valley Prices Surge 27%

In the last couple of months we’ve seen plenty of examples where prices have leveled off, or even decreased a bit, at the higher ends of the price range. “NOT SO FAST!” exclaims Paradise Valley, where the Median Sales Price rose to $1,840,000 in the 2nd Quarter this year, up 27% from the $1,442,500 median sales price in Q2 2018.

Oddly enough the median sales price had been down slightly over the prior 2 years, so the longer-term appreciation rate of 25% since Q2 2016, while still robust, is not quite as mercurial.

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- Chris Butterworth

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Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.

 

Large Lot Sizes in Paradise Valley

When we look at a typical suburban house - most neighborhoods from Scottsdale to Goodyear and Surprise to Gilbert - we tend to think any home with a 10,000 sqft lot has plenty of space. “HA!”, says Paradise Valley - where only 8% of all homes sold in the last 4 years had lots that tiny.

More than 60% of the homes sold in Paradise Valley sat on lots larger than 1 acre. A full 85% were larger than a half-acre.

Captain Obvious would point out “Luxury requires space. And money.”

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- Chris Butterworth

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Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.

 

2018 Sales Volume by City

The chart above is sorted by sales volume. Below, I’ve taken the same chart and sorted the cities alphabetically. You can decide which one works best for you.

AZ 190111 - all cities vol by city.jpg

Phoenix is far and away the leader of the Greater Phoenix Area, with 3-10 times (or more) the number of sales as most other suburbs. Mesa is the 2nd largest suburb, followed by Scottsdale, Gilbert, Chandler, and Glendale.

You’ll notice the East Valley cities typically have more volume than their West Valley counterparts, but there are also more West Valley cities dividing up the land. Overall the sales volume in the East and West Valley is fairly similar.

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- Chris Butterworth

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Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.

 

Luxury Sales Volume is Up

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?

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- Chris Butterworth

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Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.

 

Paradise Valley pricing trend leaves no questions

The Median Price per Square Foot in Paradise was up again in the 3rd Quarter this year - up 2.8% Year over Year and 14.6% since 3rd Qtr 2014.

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- Chris Butterworth

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Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.