A 15,000-square-foot home on 17 acres within the Silverleaf community in North Scottsdale sold for a record-breaking $24.1 million in 2020. (Provided photo)
What’s driving the Phoenix luxury real estate boom?
Luxury homes are selling at incredible prices all over the country. The latest Case-Shiller Home Price Index shows a 19% year-over-year jump in the 20 cities measured (including Phoenix), representing the fourth largest gain on record. Phoenix continues to make real estate headlines, but this time the luxury real estate market in our city is the center of attention as our metro area has experienced higher than normal demand for luxury homes. There’s no one size fits all when it comes to luxury homes in Phoenix and the offerings are as diverse as what each area has to offer. If you’re in the market for a pampered pad, here’s our latest insight on luxury real estate in Phoenix.
What’s Driving Luxury Real Estate Across the Map?
The high-end real estate boom began during the pandemic and escalated into 2021. High demand coupled with low inventory, a rebounding stock market and extremely low interest rates merged to create a record-breaking demand for homes valued over a million dollars. People began realizing that in a pandemic, a home is the best place to put their wealth, especially as they started spending more time indoors. Soon, home was where every vital aspect of life happened—work, life and play. People, now, see their homes as a pandemic-proof investment. Phoenix shone especially bright as our relative freedom during the height of the pandemic was a beacon for those in more constricted states. Furthermore, Phoenix luxury homes have been considered a relative value compared to properties in other comparably sized metros.
Best High-End Phoenix Neighborhoods
The numbers tell the story. According to data found in the Cromford report, there were 2,113 homes sold for over $1,000,000 in 2019. That number skyrocketed to 5,636 in 2021, representing a 166% increase in just two years!
Paradise Valley’s sights will take your breath away. Exotic golf courses, boutique boutiques, and destination resorts draw visitors year-round to this rich enclave. Eight resorts surround PV, which is nicknamed “PV” by locals. In October, one home in Paradise Valley sold for a whopping $21.5 million. Paradise Valley is one of the hottest neighborhoods for luxury homes right now. We dive a little deeper into this below.
North Scottsdale is home to world-class golf courses and some of the most spectacular mansions. The architectural style of homes is a mix of Spanish Mission, Mediterranean Revival and Southwest. Taliesin West, Frank Lloyd Wright’s winter residence, is a popular tourist destination and a national historic landmark. The house lies among the McDowell Mountains’ arid foothills.
Arcadia Proper, a desirable area, is constructed on old citrus orchards. Many of the homes here are one-story ranches (both original and modern) on large lots with lovely landscaping. Arcadia offers breathtaking views of Camelback Mountain and the Arizona Canal and offers quick access to the airport, Scottsdale and other desirable parts of town.
Cave Creek’s residents, who include some of the state’s wealthiest families, enjoy beautiful 360-degree Sonoran Desert and mountain views. With stores, saloons, and art galleries, it celebrates a modern, luxurious Western lifestyle in the foothills northwest of Scottsdale.
Why Paradise Valley Tops the List
The analysts at the Cromford Report note that Paradise Valley is experiencing astonishing appreciation rates, partly because of high demand for low inventory, mostly from out-of-state buyers. As of November, the annual average price-per-square-foot for a single-family home in Paradise Valley was at $554.50 compared to $457.19 at the same time a year ago. That’s a 21.3% change. Cromford adds that while the increase may seem high to Phoenix locals, near $600 per square foot, or higher, is a bargain for those coming from places like the west coast.
Invest in Luxury Real Estate with Halpern Residential
Helping people buy and sell luxury real estate is one of the things we do best. You won’t find a better team with the industry know-how, neighborhood insight and market forecasting intuition to help our clients make the best strategic decisions. The home of your dreams is within reach and we would be honored to help you find it. Plus, we make it easy to find luxury properties on the market right on our website. If you have any questions about the market or are ready to get going with buying or selling, please do not hesitate to give us a call at 602.595.4200.
Trevor H. Halpern, J.D. is the No. 1 independent agent at Phoenix-based North&Co. and the founder of the Halpern Residential real estate group. As a Phoenix native, Halpern’s deep knowledge of both people and property has allowed him to create client success in all areas of town. As a graduate of ASU’s College of Law, Halpern prides himself on delivering high-level strategy, efficient negotiations and precise tactical execution. Since 2011, Halpern has sold over $100 million in real estate and has been in the top 1% of real estate agents in the Greater Phoenix Metropolitan Area since 2016.