Since January 2012 (10 months ago), the average sold price has increased approximately +14.9% (up from last month), the average days on market have decreased approximately -4.9% (down from last month) and the number of transaction has increased approximately +19.1% (up from last month). In the month of October there was several large transactions in the $3 million range which increased the overall average price per square foot. As you can see from the fourth chart above, Luxury Market Index, 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.
Unlike the rest of the Phoenix real estate market, the Luxury market is trending sideways but the good news is that prices are no longer going down. We will not see an immediate increase in prices until consumers feel the economy has fully recovered and lenders become 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. Give us a call to discuss your best buying strategy, TODAY!!
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