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remaining is at one of the lowest points it has been in years. As of December 31, 2019, there are 351 days of inventory, which is significantly below the running average of 605 days, and dramatically below the 684 days of inventory available in December 2016. Inventory is down across the housing market in the entire Phoenix metro area. Looking at the market of all homes listed below $1,000,000, there are only 39 days of inventory and at $500,000 and below it drops even further to 33 days, which is the lowest point since at least 2011. F E E DE R MARK ETS Much of our market demand for luxury homes is generated by feeder markets in other parts of the country. We can determine with some accuracy where our feeder markets are by looking at search volumes on real estate websites. The feeder markets for the third quarter of this year show some interesting trends. Two states in particular are driving buyers to our area. Nearly every luxury buyer that has purchased a home through us this past year has come from California, with the clearly stated objective of escaping high taxes and crumbling infrastructure. Because of the state of the market in California, where the median home price is $549,900, California buyers can get a much better home in our state, where the median price is $295,000.

During the third quarter of 2019, 27.7 percent of market interest in the Phoenix and Scottsdale markets came from areas of California.

This becomes more interesting when comparing it to the second quarter of 2019 where only 22 percent of the interest came from the state. This is a quarter-over-quarter increase of 26 percent. In the luxury space, we feel the number is significantly higher. We have discussed this with other agents serving the same market, and we are all in agreement that right now, we project 60 percent of the luxury buyers are coming from California. Data on searches in Maricopa county confirm what we have been experiencing. This graph shows the top ten feeder markets in the country that are looking for homes in our area. The data is compiled from searches on the Realtor.com website during the third quarter of 2019.

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

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