Prices in the Phoenix luxury real estate markets typically go up during the winter season and go back down during the summer months. Since December 2012, the average sold price has decreased approximately -6.1% (up from last month), the average days on market have increased approximately +18% (up from last month) and the number of transactions have increased approximately +1.1% (down from last month). The average price per square foot is approximately $299 PSF, average days on market is 229 days and 91 transactions last month. The Luxury Market Index shows the real estate boom from 2004 to 2006 created a great deal of demand in the market and the number of transaction is back down to the 2003 to 2004 levels.
As you can see from the fourth chart above, the luxury market is showing signs of improvement. The luxury market has followed its typical trend during the summer months but overall the average price per square foot is increasing; the average days on market are decreasing and the number of transaction are increasing. These are good signs from the luxury market but we will have to see if this trend continues during the winter months. The improving market is contributed to consumer’s sentiment that the overall economy has recovered and lenders are becoming more willing to issue jumbo loans to qualified buyer.
Trying to “time the market” for the perfect time to buy is nearly impossible but there is no better time than now to purchase. Real estate prices are at an all time low and the economy is starting to see signed of improvement both in terms of real estate prices and the overall economy. Time to buy is now! Give us a call to discuss your best buying strategy today!