Despite much public concern of an imminent crash, the luxury real estate market is in a good place; perception is often very different from the on-the-ground reality. This especially applies to Arizona luxury real estate, which after two years of heavily favoring sellers has moved closer to market equilibrium. In fact, we are back to seeing above-average price increases for the perfect super-luxury estate. Here, David Newcombe of Newcombe · Zimmerman Group at Launch Real Estate, who has more than 20 years of experience in Valley real estate, discusses the state of Arizona luxury real estate.
The luxury home market is generally split into two categories with a breakpoint of about $5 million for super-luxury homes (depending entirely on location, city etc.). Housing inventory for luxury real estate is currently low, but this is balanced out by low demand. When sensibly priced luxury homes are on the market, they are still moving off the market very quickly.
The luxury market usually functions a bit differently than the rest of the market due to the fact that luxury buyers often buy a home with cash, and cash buyers will usually be more agile than someone paying with a mortgage and being constrained by lenders, appraisers, and the general mechanics and speed of home loans.
Although Arizona luxury real estate is generally in a place of balance and normalcy, its worth pointing out that this applies to any of the neighborhoods most commonly associated with luxury real estate. North Scottsdale, Paradise Valley and Arcadia remain the most popular location for luxury homeowners with the Biltmore area also being a popular luxury home community. These areas are popular due to a plethora of amazing new home developments as well stunning existing estates and proximity to some of the Valley’s airports and most high-end art, restaurant and shopping amenities.
North Scottsdale and Paradise Valley are the perfect luxury markets for people looking for larger estates that seamlessly take in the natural beauty of Arizona. The extra room and privacy are why they are popular areas for super-luxury homes.
The most popular style of home remains modern-contemporary as we continue to move away from the Tuscan-style homes that were prevalent during the previous decade. Homeowners today are looking for homes that seamlessly blend outdoor and indoor spaces. This means implementing a greater use of glass and natural light and being able to open up spaces of your home to connect the inside of a home with an outdoor patio. We are also seeing a gentle shift away from the color white in home design and toward warmer colors, which will start to play out this year.
Despite many people’s concerns, the Arizona luxury real estate is in a good position. Prices are often back to where they are last year and, generally, we remain in a fairly balanced market that benefits both buyers and sellers. Anyone looking for luxury real estate should do so with the idea that the market is healthy and the sky is not falling.