Luxury Homes ignore Housing Market Trends in 2023
(Published on - 1/31/2024 8:41:43 PM)
Year 2023 Housing Market wrap up
Overall in Phoenix Metro, the average price per square foot of active listings hit a new all-time high on January 20 of $366.43. But the biggest news in 2023 housing was the luxury market, led by Paradise Valley Township, a small residential community that surrounds Camelback Mountain bordered by both Scottsdale and Phoenix.
PARADISE VALLEY ARIZONA
- The above Chart from Cromford Report represents those parts of the Phoenix Metro Valley with a measurable supply of luxury homes. It graphs the 2 year change in the annual average price per square foot for closed listings, measured at the end of 2023. Paradise Valley leads with an increase of over 42%, followed by the next highest, Scottsdale, at 23%.
- According to Cromford, “Throughout the last year it has become more and more obvious that the top-end of the market is behaving differently from the entry-level and the mid-range.” This was echoed by the Luxury Home Marketing Institute (below).
- Locally: Homes that were priced over $2 Million saw an annual average square footage price higher than a year ago. However, homes priced under $2 Million saw a reduction in average square footage pricing.
- In another example: “Homes above $10 million have become more expensive and at the fastest rate.”
Cromford is our most respected local data on the housing market.
NATIONAL LUXURY MARKET YEAR IN REVIEW
The North America Luxury Home Review of 2023 (Link to full report) was just posted by the Luxury Home Marketing Institute. Some of this issue’s take-aways:
“The best way to sum up the luxury real estate market during 2023 might be that it remained "unapologetically resilient", despite a slower year in the overall sales volume compared to 2022.”
Economic uncertainty, rising inflation and increasing interest rates, led to a growing seller resistance to list their property which further compounded the already low levels of inventory. This was, until the last quarter of 2023, when a shift that started at the end of the third quarter saw more listings enter the market, consequently opening the door for more sales. 2023 was a softer luxury market than 2022. Listings stayed on the market longer, prices remained high, and affluent buyers choose to wait patiently for their perfect move-in-ready dream home.
In the hyper local market reports, Scottsdale is seen as a Seller’s market December sales dominated by homes priced over $4.5 Million. (full local reports at the end of the National Report Link).
Monthly Housing Market Update
Give me a call to discuss your specific real estate needs. Denise van den Bossche, Associate Broker, Realty Executives Phoenix, Exec-Elite Team Leader 602.980.0737 DeniseVDB@Exec-Elite.com.
