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MARKET OVERVIEW P H O ENI X ME TRO LUXURY MARKET As we go to press, general market news for the luxury home market is quite positive. The total number of homes priced above $1,000,000 in the entire Phoenix Metro Market that closed between 1/1/19 and 12/31/19 is slightly ahead of the number that sold during the same time period in 2018. In 2018, 2,092 homes closed escrow during the period. This year, during the same period, 2,245 closed; a 7.3 percent increase. N O RTH S COTTSDAL E LUXURY MARKET Looking specifically at the three zip codes that comprise North Scottsdale, luxury home sales were ahead slightly with 650 closing escrow in 2019, compared to 639 closing in 2018. . This represents a 1.7 percent increase in units sold. Other statistics paint a stronger picture. The number of days on market decreased slightly from 215 days to 209 days, which is a modest improvement, likely due to lower inventory availability. However, there was a definite increase in dollars per square foot. In 2018, the median price per square foot was $344, and in 2019 it increased to $361. This is a 4.9 percent increase, which, for the average size home of 4,941 square feet, translates into $83,997 of additional potential upside. As we head into the busier season, there is one area of concern, but reasons for optimism also. The point of concern relates to a slower summer sales season than 2018. If we look at the number of homes that went under contract during the 2018 summer, June 21- Sept 23, last year 171 homes were sold. However, during the summer of 2019, only 132

homes went under contract during the same timeframe, a 22 percent decrease. Since we are not seeing a general decrease year over year, we are hoping that this was a seasonal anomaly that will adjust as the year continues. There is also encouraging data when looking at luxury inventory. Inventory is measured by the number of available homes, but more importantly by days of inventory. Days of inventory means that at the current sales rate, the number of days it would take to deplete all available inventory. In the luxury space, this is always high compared to the general market. For the past year, the number of days of inventory

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Profile for The Lifestyle Collection

North Scottsdale Luxury Property Report - 2020 - Data covering all 2019 Transactions  

North Scottsdale Luxury Property Report - 2020 - Data covering all 2019 Transactions