Current market conditions for luxury and hillside homes in the Greater Phoenix area
The Greater Phoenix area has been a popular destination for homebuyers and investors alike, offering a dynamic landscape of opportunities and challenges. In this article, we will discuss the current market conditions for hillside and luxury homes in the Greater Phoenix area.
According to a recent report by Norada Real Estate Investments, the median sales price for a home in Phoenix in September 2023 was $440,000, reflecting a 2.3% increase from the previous year 1. Although this growth rate is slower than the preceding year’s 24.3%, it still signifies a rise in home prices. While inventory has been increasing, it remains relatively low. The heightened demand leads to a competitive market, necessitating swift decisions from buyers when a suitable property is found. The average time a home spends on the market has increased to 35 days in September 2023, compared to 29 days in the same month of the previous year. This indicates that buyers are taking more time to decide, suggesting a more balanced market 1.
Luxury sales have surpassed 2020, and an unprecedented demand has depleted inventory and put upward pressure on home prices in the top 10% of the market 2. According to In Business Phoenix, the average home value in the Phoenix-Mesa-Scottsdale area is $449,628, reflecting a 7.0% decrease over the past year. Homes are going under contract in approximately 20 days 2. The Realtor.com Top Housing Markets of 2022 report lists Metro Phoenix at No. 19 of the cities that will lead the nation in 2022 when it comes to listing price appreciation and home sales growth 2.
In terms of hillside properties, the market is undergoing an adjustment period after the rapid growth seen during the pandemic, and this could be seen as a positive development, allowing the market to stabilize 1. Some firmly established markets are seeing a surge in demand as their affluent buyers take advantage of softening prices, while other markets have a higher demographic percentage who are more affected by increasing mortgage rates, resulting in lower demand 3.
In conclusion, the Greater Phoenix area housing market is navigating a period of change, with varying trends in sales, inventory, supply, and pricing. While median home prices have continued to rise, the rate of growth has slowed down in 2023. The market remains competitive, albeit favoring buyers more than in previous years. If you are looking to buy or sell a hillside or luxury home in the Greater Phoenix area, it is advisable to work with a professional real estate agent who can help you navigate the market and make informed decisions.