W alt Dan ley Realt y Northeast Valley – Luxury Market Summary – June 2022 This summary analyzes single family homes over $500,000 in all areas of the Northeast Valley, including Scottsdale, Paradise Valley, Arcadia, Biltmore, Carefree, Cave Creek, Fountain Hills and Rio Verde. SUPPLY At the end of May, the active listing count was much higher This Year 1,521 than the month before, moving from 1,153 to 1,521. This Last Year 1,285 is the first time we have a seen a significant jump in supply during May since 2005. We measured 1,285 at the same time last year, so supply is up 18% since then. This is the first year-over-year increase since 2016. Clearly the market is shifting, and the changes are happening at great speed. Homes between $500,000 and $1 million have seen supply rise 18% compared to a year ago. Listings between $1 million and $2 million are where the bulk of the additional supply has arrived. They are up 36% compared with a year ago. Homes over $2 million are up 6% from the same time last year. Distress remains extremely low. There are eight pre-foreclosures but no lender-owned homes. Active Listings
DEMAND - SALES The level of closing activity remained fairly high during May. This Year 717 We saw 717 closed listings, down 19% from May 2021 but Last Year 886 higher than all earlier May totals, the prior record being 634 in 2019. Limited by very weak supply, sales between $500,000 and $800,000 dropped 35% compared to a year ago. In contrast, the range over $2 million was up 2%, while sales of homes between $800,000 and $2 million were down 14%. Sales
DEMAND – UNDER CONTRACT We can anticipate future sales by looking at homes under This Year 849 contract. We started June 2022 with 849 listings under Last Year 1,100 contract, which is down 23% from 1,100 in June 2021 and down 8% from 921 last month. This is a weak result for both year-over-year and month-to-month changes. We deduce that demand is declining, and we are likely to see closing numbers during June that are much lower than June 2021 and also lower than May 2022. The numbers get stronger as we move up the price ranges. Homes under $1 million are down 35% but homes over $2 million are down 7% compared to a year earlier. Normal sales comprise 99.5% of luxury homes in escrow, with only four pre-foreclosures and no lender owned home. # Homes Under Contract
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