LPG Group | Whisper Rock Phoenix Life | September 2023 Digital Newsletter

WHISPER ROCK ESTATES

LIFESTYLE

September 2023

Mid-Season Real Estate Snapshot

Exclusively Presented By Luxury Property Group

Whisper Rock Fall Real Estate Snapshot

We are pleased to provide our annual “Mid-Season Real Estate Update” and we hope that you are all healthy, happy and enjoying the summer.

First, we want to share with you the success of your on-site real estate team. Will Foote, Jay Pennypacker, Mike Holder and Debbie Negrin (Luxury Property Group) have sold over $120 million in real estate during the last year. We were involved in 7 of the 10 transactions in WR Estates and an additional 44 transactions outside the gates. We rank as the #2 overall producing team in the state of Arizona and we are ranked in the Top 100 Worldwide Agents for Sotheby’s International Realty. Check out the back cover showing our sales outside of WR Estates:

Our team continues to outperform all other real estate groups with the highest volume of sales and number of transactions in WR Estates. We were involved in 70% of the $31 million in sales in WR Estates during the last 12 months with homes and land consistently selling at a higher price per square foot and overall sales price with our team. Over the past two decades our team members have been involved in 232 transactions behind the gates of WR Estates!

Luxury Property Group is a boutique real estate group offering personalized customer service that exceeds the expectations of our clients, which is consistent with the brand and identity of WR Estates. We have a deep understanding of the WR Estates lifestyle which enables us to deliver the best marketing platform and sales results in the community and beyond.

WR Estates Market – HOMES

During the last 12 months there have been a total of 7 home sales compared to 11 home sales the previous year. The average sale price for homes in WR Estates has increased by 20% over the last 12 months averaging $4,009,643 this year versus $3,349,545 last year. Additionally, the average price per square foot has increased during the last 12 months finishing at $839 per square foot this year versus $620 per square foot last year; a 35% increase. Home sales pricing ranged from $2,850,000 - $6,000,000.

During the last 12 months, WR Estates has outperformed the majority of the communities in North Scottsdale. Even though the number of home sales has dropped by over 30%, the average sales price and price per square foot are significantly higher at 20% and 35% increases respectively compared to modest average increases of less than 10% throughout North Scottsdale.

During the 15+ years we have been selling in WR Estates we consistently had an inventory of 15 or more homes available for sale. Currently, there are only 6 homes for sale and these homes are all “to-be-built” spec homes which will take approximately 24 months to build. As a result, we expect more of a stabilization in the number of home sales per year with continued increases in pricing based on the historically low inventory of homes for sale.

7 $4,009,643

WR Estates Collection

As referenced above, the homes available for sale in WR Estates are “to-be-built” homes and currently there are 5 homes that we are offering as part of our “Estates Collection”. We have selected some of the best homesites in the community and partnered with a talented team of architects and builders to offer state-of-the-art architecture and construction on these select homesites. Architects Craig Wickersham and Corey Wiebers have created inspired designs to fit each homesite and builders R-Net Custom Homes and Platinum Companies will deliver the highest quality materials, appliances and fixtures for each home. For more information visit www.LPG-3.com

WR Estates Market - LOTS

The lot market has dropped during the last year compared to the previous 12 months. 3 lots sold this year versus 9 lot sales last year. The average lot sale price during the last 12 months has decreased averaging $800,000 which is a 24% decrease from the previous year average of $1,058,333. Currently there are 3 lots on the market in WR Estates with list prices ranging from $450,000 to $3,000,000.

LOTS:

# SOLD AVERAGE PRICE

3 $800,000

Listed below are the detailed statistics for WR Estates sales this year:

Whisper Rock

Homes/Villas

Homes/Villas

Lots

Current Lot Market

Avg. List Price $1,550,000

Overall Luxury Market in North Scottsdale

When we review the luxury HOME market in North Scottsdale we utilize the 85262 and 85266 zip codes and include homes that closed at $1,000,000 or greater. In this market sales volume has dramatically decreased by 47%, while the average sales price has increased by 3% during the last 12 months. Overall, 545 homes have sold in the last 12 months compared to 1022 sales during the previous 12 months. Average sales price is $2,155,813 this year compared to $2,095,468 last year. Furthermore, the average sale price per square foot has increased by 6% averaging $525 this year compared to $493 last year.

As it relates to the ultra luxury market that includes sales over $3,000,000, there were 103 sales this year compared to 143 during the previous 12 months; a 28% decrease. This is consistent with the micro-market in WR Estates where more demand than supply is keeping prices rising with the best homes selling very quickly and the ultra-luxury market remaining resilient. We can remember when we sold the highest priced home ever sold in Arizona a few years back for $12,750,000. Currently, this type of sale is a common occurrence with homes now even selling for twice this amount a few times per year.

Finally, we feel that historically low inventory will cause pricing to continue to increase in North Scottsdale with the number of home sales stabilizing until we experience an increase in the number of homes available for sale.

The luxury LOT market in North Scottsdale is measured again using the 85262 and 85266 zip codes and includes lots that have closed at $300,000 or greater. Lot sales volume has dropped with 74 lots selling in the last 12 months compared to 166 sales during the previous 12 months; a 55% decrease. Average sales price has also dropped averaging $722,467 this year versus $810,258 last year; an 11% decrease. As it relates to days on market for luxury lots selling over $300,000, the average this year is 182 days versus 175 days to sell last year.

When we dive deeper into the lot market, the lack of inventory is producing a similar effect as it has on the home market, but the increase in building costs and the amount of time to build a home is dramatically affecting lot sales in North Scottsdale. Building timelines were consistent for many years at 18-24 months to complete construction where now many builders are quoting up to 36 months to build a custom home. This is another factor that has helped grow the ultra-luxury home market and spec home market where the sellers and builders/investors that are delivering new inventory sell their homes at premium prices. More to the point, today buyers are willing to pay a premium price for a new home now rather than wait the 36 months to build their custom home.

Looking to the future and based on the scarcity of developable land and low lot inventory in North Scottsdale, we expect lot prices to steadily grow going forward.

In closing, thank you for your business and your time reading this update. Please feel free contacting any member of our team for assistance in evaluating your real estate needs. You will continue to receive the very best real estate services from our group and we will always go the extra mile for you.

Warm regards,

Will Foote | Jay Pennypacker |

Mike Holder | Debbie Negrin Luxury Property Group