Scottsdale real estate and news | Greater Phoenix real estate and investments

Sales Of Luxury Homes In Paradise Valley Are Picking Up

Sun, 08 Nov 2009 00:00:00 -0500

Sales pick up, but inventory remains high: out of town buyers are buying discounted properties at attractive prices.

Sales of luxury homes are picking up. We looked roughly at the over $750,000 market a while ago and in this segment we'll look at the quintessential luxury home market: Paradise Valley.

The dramatically lower price ranges have resulted in some bidding wars.

Who's buying? A look at tax mailing records reveals that out of state buyers are key in this good deal grab.

While all types of homes are selling: distressed and not, the lender owned homes are the ones shortest on the market. Lender owned properties are often new or recent construction homes, sometimes from custom builders who have defaulted.

In October 30 properties sold, up from 25 in September and 27 last quarter. Overall sales for the year are up over last year (YTD) by 18 properties.

Months of inventory is down to 15.8 months but supply is up to 475 homes.

The high supply and still relatively low sales number mean prices are down. The homes selling are the well priced "good deals" which are mostly lender owned and short sales.

Paradise Valley Real Estate Sales Market Overview

Sun, 20 Sep 2009 12:51:17 -0400

September 2009 home sales data compared with previous periods and last years

In the last 30 days ending September 10th a total of 23 homes sold in Paradise Valley. The lowest price was $390,000 and the highest $5,948,000. 7 were below $1,000,000, 13 were from one million to 3 million.

4 of the sales were bank owned properties and one of the sold properties was a short sale.

Like the rest of the luxury home market in the metro Phoenix, Paradise Valley is seeing its share of hard times. With inventory at multi year highs its a market tuned very much to the buyers favor.

That's why prices continue to decline. The are down 24% from last year and last year they were down 6%. Even so, the long term appreciation annualized since 2001 is a positive 4.1%.

Paradise Valley had a large increase in prices as the entire make up of Paradise Valley was in a transition: it has gained much favor from wealthy buyers who before would not have considered it. The median and average numbers are also skewed by the many large new homes that were built in place of the older smaller and less expensive homes.

As noted in the previous months any sellers need to be very diligent about attracting buyers. Very few succeed is a transfer of ownership. Only 32% of the properties succeed in selling while 68% get canceled or expire: they fail to sell and that is often after being on the market a year to several years.

Focus On: Scottsdale Real Estate Sales Statistics

Mon, 03 Aug 2009 11:15:02 -0400

July 2009 Scottsdale home sales news compared to previous months and last year.

Scottsdale is unlike other parts of Greater Phoenix. It's golf courses, luxury shopping, resorts, restaurants and many second home owners, but it's not been spared the difficulties in the market.

It took longer for the market declines to reach Scottsdale as it did most higher priced areas. It was the starter home market, the less established outer metro areas that were first to feel the hurt, but the slow down did catch up to Scottsdale and as the median price rises the distress does as well. While the low priced homes, after the correction, are selling like fresh baked rolls, luxury homes, particularly those above conventional loan limits are at a standstill.

Sales in July 2009 were 381 homes. It's quite normal for the sales to go up over spring into early summer. Even over last year they are much higher when only 282 home sold. This rise in sales means inventory decreased to just under 8 months, but expect it to rise in the next quarter.

The high inventory has put a drag on prices. They have been on a steady decline and they will continue to correct as the high end homes drag the median down.

Pendings have decreased since June, an indicator of the seasonal end.

Scottsdale has help up well and long term appreciation is sill at 4.5% annualized since 2001, while Greater Phoenix has lost it's gains: basically, the median prices is equal to January 2001.

The priced will not go down as much as many of the other parts of the valley.

Lender owned properties make up only 5.7% of the active market compared to 14% for the valley. Sales are only 27% lender owned and 18% short sales while they are 55% lender owned and 28% short sale for Greater Phoenix.

Scottsdale real estate and news | Greater Phoenix real estate and investments

Sales Of Luxury Homes In Paradise Valley Are Picking Up

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Paradise Valley Real Estate Sales Market Overview

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Focus On: Scottsdale Real Estate Sales Statistics

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