As featured in the 12/7/2025 Phoenix Business Journal. View the full article HERE.
Written by Angela Gonzales – Senior Reporter, Phoenix Business Journal.

Of all the luxury homes priced over $5 million in metro Phoenix, 33.6% have had price cuts so far this year — the largest amount ever in the history in Maricopa County.
These price cuts come at a time when pending luxury listings in metro Phoenix are down 20.8% year-over-year through the end of November, said Frank Aazami, market expert with Private Client Group at New York-based Compass Inc. (NYSE: COMP). Aazami crunched the numbers exclusively for the Phoenix Business Journal between Jan. 1 and Dec. 1 based on listings on the Arizona Regional Multiple Listing Service, which agents use to list home sales.
Within the metro, 243 homes priced over $5 million sold in 2025 through Dec. 1. Of those, only 28 of them closed at or above $10 million, Aazami said. Some sold with $5 million price drops, including one at 6240 N. 59th Place in Paradise Valley that was listed for $20 million and ended up selling for $15 million.
Another luxury home at 8185 E. Alameda Road in Scottsdale was listed at $12 million and sold for $6.5 million — a $5.5 million price drop, he said. A luxury home at 6112 E. Quartz Mountain Road in Paradise Valley had an even larger price drop, selling for $5.25 million after it was listed for $11.5 million — a $6.25 million reduction.
Overall, the high-end market above $5 million is in a moderate softening phase, with median home offering price per square foot just above $1,100, which is down from its pandemic peak of $1,400, Aazami said. He tracked 368 homes priced above $5 million listed for sale on the Arizona Regional Multiple Listing Service. Meanwhile, 98 uber high-end homes priced above $10 million are active on the market, he said.
“The luxury market is not collapsing, but rather transitioning from a red-hot Seller’s climate to a more balanced or buyer-favorable environment in many submarkets,” Aazami said. J. Andrew Turley, president of Phoenix Valuations, said the exuberance in the Valley’s luxury market has faded. “Certainly the luxury and ultra luxury markets are very strong by most fundamentals in comparison, but long gone are the days of asking $1,400 to $2,000 per square foot and not getting much price competition or buyer scrutiny,” Turley said. “There are homes in this range that sell, but they are on choice streets, in choice boroughs, with epic architectural and interior design.” Overall, there have been many speculative builders getting in the marketplace that are “move up” developers from lower price points saturating the luxury market especially in the $6 million to $10 million range, he said.
“And also sellers that are just out of touch with reality,” Turley said. “The luxury and ultra luxury markets are fundamentally sound; it’s just things are settling down a tad.”
When luxury homes sit on the market for too long, some agents encourage their clients to take their property to auction rather than slashing listing price. For example, one 13,606-square-foot mansion in the exclusive Upper Canyon of Silverleaf in Scottsdale, currently listed for $24 million, is being auctioned by Sotheby’s Concierge Auctions. On Dec. 4, bidding opened at $12 million and will close on Dec. 18. When that home at 11200 E. Canyon Cross Way sold for $21.5 million in October 2021, the luxury market was at its highest peak, Aazami said. The buyer paid $1,704 per square foot for that estate at the time, he said. “The average market value within the same neighborhood today has adjusted and the number of units selling have also declined,” he said.
Sarah Perkins, director of industry research and senior account executive for Navi Title Agency, said she’s seeing a slight decline in luxury demand.
She attributes that decline to stock market volatility and a weakness in crypto. “Given all of the volatility coming out of Washington, D.C., the luxury market has been rather resilient,” she said. “The tariff rollercoaster only gave the market a bit of a stutter step in April. The stock market stayed strong and only showed signs of weakness in recent weeks and despite many fears it has bounced back.”Crypto, on the other hand, isn’t bouncing back.
“Growth on Wall Street, crypto, corporate earnings and corporate confidence really fuel the luxury market,” she said. “Very recently some of that confidence has started to cool, which has led to some waning in luxury buyer demand.” That said, pricing a home realistically is essential, Aazami said. He advises his clients to avoid overpricing and unrealistic expectations and to expect fewer bidding wars, more concessions and more calibrated pricing adjustments.




















