The Arizona Luxury Market Breathing Life
April 4, 2012
Since the housing and financial downturn, the luxury segment of the market has been severely impacted. Choked off demand, huge price drops and a glut of inventory have made this segment stagnant.
So, is the luxury market experiencing the same recent upswing in home sales as the rest of the market?
There seems to be a renewed interest in luxury, as savvy buyers are looking for value in the segment. In February of this year there were 21 luxury properties that went under contract in Tucson, the highest monthly total in the last 2 years. March continued with a strong showing with 18 luxury listings going under contract. Those contracts should results in higher closed sales in the next few months.
The Phoenix market has seen continued activity in luxury, with 365 luxury properties going under contract in the first quarter 2012, and Phoenix is down to 13.6 months of luxury inventory - one of the lowest levels in the last 2 years.
Who is doing the luxury business
The overwhelming majority of luxury real estate in Tucson is sold by one company - Long Realty Company. In fact, year to date over 70% of luxury homes were sold by Long Realty.
As housing heats up, keep an eye on luxury homes. There are still challenges to work through such as appraisals and strict down payment requirements for high end purchases. A renewed interest by affluent buyers may be the result of a stronger stock market, slowly improving economy and better consumer confidence.