Luxury Phoenix Valley Home Inventory Increases Making Competition For Buyers Fierce.

October 22, 2008

Update of the Greater Phoenix luxury home market.

Home sales in the price range of $1 million dollars plus is a completely different market from the starter home segment and the move up segment but it's not beyond the reach of the current financial slow down.

Luxury home sales were pretty good even while the other segments suffered in sales and saw huge price declines.

While prices continue to decline -but at a much slower pace - for both starter and move-up homes the luxury home market has been forced into deep competition with itself.

There is simply a tremendous amount of inventory out there giving the few buyers a amazing amount of leverage and choice. The most telling comparison is total active listings to the amount of listings sold and the resulting days of inventory: the days of inventory ranges from 834 for the $1-$1.5 million dollar segment to 1,635 days of inventory for the $3 million dollar plus range.

It's interesting to see, on the other hand, that the sold price per square foot is holding pretty steady. This is important but in the field, prices for many homes are dropping tremendously. I dare say that prices in areas such as Paradise Valley are becoming affordable: it's a buyer market.

Sellers have a tough fight for a buyer. In such a competitive market it's not enough to list with a face you see all over the glossy magazines. That strategy will make the Realtor popular but it's not likely to sell your home. In the more global market a home need more exposure an along with the home the entire lifestyle and city much be sold to prospective buyers who are now coming from around the country and around the world.

$1M-$1.5M	September 2008	August 2008	September 2007
Active	1,255	1,272	1,437
Pending	46	56	77
Sold	38	39	42
Days of Inventory	834	839	560
Sold $/SF	$282.00	$283.00	$299.00

Greater Phoenix Homes / Condos For Sale $1 million to $1.5 million.

$1.5M-$2M	September 2008	August 2008	September 2007
Active	618	602	555
Pending	19	19	29
Sold	11	13	11
Days of Inventory	1,125	1,096	564
Sold $/SF	$355.00	$360.00	$371.00

Luxury Homes for Sale in Phoenix 1.5 million to $2 million.

$2M-$3M	September 2008	August 2008	September 2007
Active	655	621	490
Pending	10	10	19
Sold	7	14	12
Days of Inventory	1,444	1,329	660
Sold $/SF	$413.00	$418.00	$428.00

Luxury Phoenix Valley Homes For Sale $2 million to $3 million.

$3M+	September 2008	August 2008	September 2007
Active	563	563	470
Pending	17	18	13
Sold	8	6	5
Days of Inventory	1,635	1,675	1,122
Sold $/SF	$552.00	$544.00	$550.00

$3 million dollar + homes for sale in Greater Phoenix by Map.

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