Here, real estate is a story of many markets, price points and sales. The region is expected to have some of the hottest markets in the country in 2017, according to Realtor.com. Phoenix leads its list of 100 top markets for 2017, with projected growth of 5.9 percent in price and 7.2 percent in the number of sales. Tucson is also in the top 10 with an expected 6.1-percent increase in prices and 5.5-percent bump in sales. Arizona was hard hit during the recession. Many places or price brackets are coming back as the last pieces of the recovery puzzle to fall into place.
Entry and mid-level brackets have a tight supply of for sale properties, but the luxury story revolves around an oversupply. In Paradise Valley, one of the Southwest’s premium locations, the median list price was $2.33 million, while the median sale price for the million-plus bracket was $1.43 million. The number of luxury properties on the market in Paradise Valley ranges from 30.9 months for the $2 million to $3 million bracket to 102 months for $5 million and up. Scottsdale has a median sale price of $509,000. Over a $1 million, the months of inventory range from under a year to 61 months for the $3 million-and- up bracket. “People want quality, and if you are selling for over $3 million in Paradise Valley, you should talk to a stager and an interior designer, so you can be competitive, not in price but in condition,” says Frank Aazami, with the Private Client Group at Russ Lyon Sotheby’s International Realty in Phoenix.
What’s hot: “What’s on fire are new builds. You can’t get enough of new builds. They are getting north of $500 to $700 and $800 a square foot,” says Aazami. Penthouses like those at the Ritz Carlton and Mountain Shows are getting over $1,000 a square foot. At $1,100 per square foot, a unit at Mountain Shadows set a record for the region.
Russ Lyon Sotheby’s International Realty®, Frank Aazami, Private Client Group