Luxury Home Market

The Sweet Spot for Buying Luxury Homes

If you’ve been looking for a home at the high end of your market, but haven’t found the right one, you may have put your search on hold. But according to recent data, now may be the time to jump back in. Here’s why.

Locally in the Northeast Valley of the Sun

The luxury home market in the Northeast Valley of the Sun, which includes the communities of Scottsdale, Rio Verde, Fountain Hills, and Carefree, remains robust. The market has experienced significant growth year-to-date, with 458 homes sold compared to 348 during the previous 5 months year to date--a 31% increase. The average year-to-date sold price of $2,921,309 is a slight 1% lower than in 2023, and the price per square foot has increased to $632 from $600…a 5% increase.

Luxury buyers in this region know what they want and are willing to invest in properties with exceptional views and state-of-the-art amenities. Current trends indicate that buyers are willing to sacrifice square footage for quality.

Inventory continues to be a strong factor in pricing. The market over $1.75 million currently offers only 566 available homes (compared to 458 homes sold during the first 5 months of 2024) resulting in an increase in the average asking price to $4,182,705. Market times for properties have ranged from 82 days on market in 2023 to current inventory that has been on the market an average of 109 days. This near-balanced market offers opportunities for both buyers and sellers looking to make a move, highlighting the appeal and strength of luxury real estate in the Northeast Valley of the Sun

Nationally, There Are More Luxury Homes To Choose From

What’s considered the top-end of the market, or a luxury home, will always vary by location. But generally speaking, they’re homes that are valued in the top 5% of any given market. According to a recent report from the Institute for Luxury Home Marketing, the selection of luxury homes is increasing (see graph below):

As the graph shows, there are considerably more single-family luxury homes available now than there were a year ago. In fact, there are even more than there were just a month ago. This means you should have a wider variety of top-of-the-line homes to choose from, each with unique features and styles.

Whether you were searching for the latest design elements, like modern kitchens with chef-grade appliances, a breathtaking view, or integrated smart home technology, more luxury inventory means you should have an easier time finding one that matches your taste and lifestyle.

Rising Luxury Home Prices Can Help You Build Wealth

Another important factor to consider is that luxury home prices are on the rise. According to HousingWire, luxury home prices have increased by 8.7% over the past year. That’s why:

“People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise . . . They’re ready to buy with more optimism and less apprehension.”

This means buying before prices climb higher – and while more inventory is on the market – may be your sweet spot. Because home prices are rising, owning a home could help you build more generational wealth over time. On the other hand, if you wait to buy, you might end up paying more for the same home later on as luxury prices continue to rise.

Bottom Line

With growing inventory and rising prices, you have a greater selection of luxury homes to choose from and an opportunity in front of you. Want to see the higher-end homes that are available in our area? Let’s connect today.