The real estate market in Paradise Valley continues to set record levels based on average price-per-square-foot but dramatic increases in interest rates along with the recent increases in months of supply could mean supply is catching up with demand – which typically leads to changes in pricing. Although interest rates have slightly declined from their recent highs, they are still nearly double the rates in 2020/2021.
So does this mean that Arizona’s luxury real estate market is becoming frozen? Although many of the speculating buyers are now sidelined, there is still a limited supply of “quality, newer, updated” luxury listings in our market to meet the continued demand of both out-of-state buyers along with in-state buyers who want newer homes without having to wait for and live through lengthy renovations. Those owners who are “locked-in” at record low interested rates over the past few years are also less likely to move thereby giving up their historically low rates on their current homes. For cash buyers, this is a less of a concern and second to many primary concerns about potentially buying in a declining market. In short, they are telling us they want more secure value and investments while also finding the best homes now to meet their needs and lifestyles. This means knowing inventory and unique value opportunities are important and why who you choose to work with is even more important now in this market!
Current inventory of homes for sale in PV over $2M has increased to around 152 homes but as you can see from the charts, the months of supply is sporadically taking out of “sellers market” territory and towards a more neutral footing. Quality, newer, modernized, and move-in ready homes still command top-dollar in today’s luxury market in Paradise Valley.
CURRENT PRICE PER SQUARE FOOT SOLD:
Paradise Valley Real Estate Pricing Report
A number of factors beyond price-per-square-foot sold go into determining the true value of your Paradise Valley home. If you would like a more accurate estimate of your home value, contact us today for a FREE value estimate (click here).
CURRENT MARKET CONDITIONS (BUYERS VS SELLER’S MARKET):
When selling your home, it is important to consider the overall nature of the market and if it is a BUYERS MARKET, a SELLERS MARKET, or somewhere in between. These two market conditions generally mean the following:
BUYERS MARKET: Supply exceeds demand, home pricing decline, homes take longer to sell, more homes are for sale, and price reductions and lower offer prices are more common. Buyer’s markets typically see supply of homes for sale at or above 7 months.
SELLER’S MARKET: Demands exceeds supply, home prices increase, homes sell quicker, fewer homes are for sale, and good homes can result in “bidding wars.” Seller’s markets typically see supply of homes for sale at or below 5 months.
HOW WE CAN HELP YOU…
The Goldman Ruge Luxury Group provides luxury property owners, buyers, and sellers in Arizona with the highest level of service and support when dealing with one of the largest personal financial decisions our clients will make in Arizona. Our clients depend on us as their trusted advisors for all aspects associated with their luxury properties both including and beyond the home buying and selling processes by helping them protect and maximizing the asset value of their luxury properties. We primarily focus on luxury property sales in the Paradise Valley, Arcadia, Scottsdale, and Phoenix areas.
LET US HELP YOU…