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Luxury Housing is Coming Back

July 24, 2013

Luxury Housing is Coming Back

We've all heard about the housing recovery, especially the robust activity at lower price points. What does this mean for luxury housing here in Arizona? Let's take a look.

If we compare luxury home sales Jan-Jun 2013 to the same time period last year, we see a significant jump in buyer activity and purchases. In Tucson, closed residential sales $800,000 and above increased 25.8% from 2012 and new properties under contract were up 26%. For comparison, the number of residential sales at all price points was only up 3.1%. Similar story in Phoenix, closed luxury sales up 31% while the overall market was actually down 2.2%.

A rise in sales is helping to stabilize the months of inventory, with Tucson dropping to 19.4 months and Phoenix at 9.4 months. While 6 months is considered "balanced" in the overall housing market, higher price points typically experience longer times on the market.

Tucson Luxury

  Jan-Jun 2012  Jan-Jun 2013   % Change
 Closed Units  66  83  25.8%
 Under Contract  77  97  26.0%
   as of June 2012   
 as of June 2013  
 Months of Inventory  25.4  19.4  -23.6%

Phoenix Luxury

  Jan-Jun 2012  Jan-Jun 2013   % Change
 Closed Units 736 964 31.0%
 Under Contract 863 1157 34.1%
   as of June 2012   
 as of June 2013  
 Months of Inventory  10.2 9.4 -7.8%

TARMLS and ARMLS data pulled 7-21-13 using Brokermetrics software for residential closed sales $800,000 and above 1/1/12-6/30/12 and 1/1/13-6/30/13.

The data supports a position that the luxury housing market is making a comeback, and is outpacing the overall residential market so far this year. If you have been holding off on listing your exceptional property, now could be an ideal time.

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