The Luxury Home Market in Scottsdale & Paradise Valley (Phoenix Metro area) is on fire!  This time last year there was 851 sales with a $1 million+ sales price, this year we have 888.  Last year there were 44 sales above $3 million this year we have 63.

AZ Central did as story on Uber-Luxury Home Market and that the Housing market is booming for properties $2 million and up.  Even though the luxury home market is on fire as the experts say don’t worry because there is enough inventory to choose from.  Today there is 1,376 homes priced at $1,000,000+ and 222 homes priced at $3,000,000 +.

$1,000,000+

$3,000,000+

COLDWELL BANKER PREVIEWS INTERNATIONAL® just released its LUXURY MARKET REPORT 2014 EDITION II

And it’s really interesting.  I can’t say that it compares much to our market here in Arizona + the only blurb in the report whispers Scottsdale with 577 homes sales above $1 Million (17th on the list).  What’s really interesting is that Penta-millionaires 35 and under reported the highest average purchase price of all age groups – $7.8 million – and have the largest percentage (80%) of all age groups paying all-cash. Now Arizona although a strong luxury home market will only see a handful of $5-8 million dollar home sales and most are not coming from young buyers. And to break it down The $5-8-10 million dollar market you see in LA, NY, Miami, and other luxury real estate locations are compared to the $1.8-2.5-3 million dollar home sales here.  So tell us If you are an Arizona Resident or luxury home buyer in Arizona do you agree with the report below? 

HIGH-NET-WORTH CONSUMER SURVEY
The U.S. high-end residential real estate market remains strong, with nearly half (48%) of all wealthy consumers indicating that they plan to purchase a luxury home within the next 12 months, according to the companion survey of wealthy U.S. consumers with a net worth of at least $5 million (penta-millionaires) conducted by the Coldwell Banker Previews International® program and the Luxury Institute.  Younger buyers are by far the most highly motivated to purchase:  An overwhelming 81% of affluent individuals under 35 plan to buy a luxury home in the next year.

The report brought to light strong gender gaps:

• 70% of women reported paying all-cash for their most recent property vs. 57% of men.
• Women reported buying more expensive homes than men:
  • 22% of women spent $10 million or more for their most recent property vs. 13% of men in the same wealth bracket.
• 46% of women have plans to buy another home in the coming year, up from 31% in 2013.

Location, location, location may no longer be the golden rule of real estate:

• With the ability to work remotely now a reality for many, only 25% of the under-35 age group indicate that location dominates their search criteria.
• Instead, 75% say that lifestyle considerations are the No. 1 factor driving their choice of which home to buy.
• As evidence of this powerful generational shift, 86% of buyers 65 and older say that location remains their top priority.  

The survey reveals dramatic generational differences:

• Penta-millionaires 35 and under reported the highest average purchase price of all age groups – $7.8 million – and have the largest percentage (80%) of all age groups paying all-cash.
• By stark contrast, wealthy buyers 45-64 paid an average of $2.7 million for their most recent home purchase while buyers 65 and older spent just $1 million.

Hottest In-Demand Amenities:

• Nearly one-third of all wealthy buyers under the age of 45 count a “green” or “LEED certified” home as more important than it was 3 years ago.
• The trend is also catching on among wealthy buyers of all ages, with 21% saying that they want to buy an eco-friendly home, up from a mere 7% in 2013.
• As homes become increasingly high-tech, 25% now consider a fully automated home a priority.
• 37% of respondents under age 35 and 30% of those with a net worth exceeding $10 million will prioritize safe rooms in their next homes.

You Are Now Caught Up in The Phoenix Arizona Luxury Real Estate Market!