The rich are still buying $10-million homes (in case you were wondering) here in Scottsdale, Paradise Valley, Phoenix area.
Apparently, the rich are still buying homes during covid 19 in the Scottsdale, Phoenix, Paradise Valley-Arizona area.
Even with the new showing restrictions that have resulted from covid, it has done little to slow Scottsdale, Phoenix, Paradise Valley luxury market.
In 2019, Phoenix (Metro… Maricopa County) recorded 109 residential sales of $3 million or more in March – July combined, according to the Multiple Listing Service. During the same period this year, the county saw 86 home sales of $3 million or more, including 16 transactions north of $5 million. It does show a drop in sales, but the overall inventory is down.
With interest rates hitting historic lows, buyers with plenty of cash on hand are still hunting for deals. In April, One of the most expensive home sale in paradise Valley turned heads when the buyer dropped $17.5 million on a contemporary compound in Paradise Valley. The buyer got a decent discount as well, as the 15,000-square-foot stunner first hit the market for $21 million.
The luxury market received another shot in the arm in the same month as another Paradise Valley estate once owned by Los Angeles Angels star Justin Upton traded hands to another ball player Los Angeles Dodgers, David Price for a whopping $9.5 million. I’ll tell you what, ball players have the best cribs!
People always ask On whether or not now’s a good time to buy a million dollar house, my response is always “Not to sound so much like a Realtor, but yes.”Says Juan Pesqueira, Realtor
The next few months could be a unique opportunity to land a trophy home that wouldn’t otherwise be available. There are certain homes in Arizona. that you’ll never see on the market unless someone dies, Pesqueira said, but recessions bring motivated sellers out of the woodwork.
During the recession in 2008, a bevy of impressive bank owned estates surfaced for sale during the following 4 years, including the highest sale in Paradise Valley at the time… $10.5 million mansion. Many (including myself) were shocked at that sales price but the estate was one of a kind and the buyer was smart because today that property could break the sale price record and get at or north of $20 million (Just my opinion) . In fact, every single bank owned luxury property sold during that time. Some you are seeing them back on the market at 2-3 times the prices paid for during that time.
If you’re looking at a good price for a property — combined with a good loan — deals exist. There are definitely some more big sales coming.” Although inventory is down, buyers trying to take advantage of the market to snatch a trophy home have plenty of options.
This shows you how fast inventory moves. When I started this blog (a week ago) there were 1337 properties listed for $1 million or more and 86 are at or above $5million. Today (8/14) there are 1236 with 76 at or above $5million in Scottsdale (area), according to ARMLS. Those include a $32 million dollar estate property on approximately 17 acres in the highly esteemed billionaires’ row in Silverleaf and an EXTRAORDINARY CONTEMPORARY MASTERPIECE BY CP Drewett with UNPARALLELED VIEWS, PRIVACY, AND LOCATION in Paradise valley for $20 million.
Listing agents don’t seem to be shying away either. Twenty seven (was twenty nine a week ago) of those 86 properties have hit the market since the beginning of March, when concerns over the pandemic began to swell.
Chasing a deal? Scottsdale, Chandler, and Carefree all have REO properties where the bank is trying to unload them. Price ranges from $1.25M – $1.65 million. The most impressive is the Elegant old-world architecture situated on a private lot in Desert Highlands.
At the top of the market, sellers base their decisions on emotions rather than finances, Pesqueira said. And as for house hunters, “a buyer buying a $5-million home isn’t worried about COVID-19.”
“At that price point, it’s all psychological,” Pesqueira said. “As long as they are feeling good about their investment, they are going to continue to make moves. Their lives aren’t very affected.”
The rich aren’t just buying. With such low interest rates, those who can afford it are making moves such as refinancing and getting loans for ambitious remodels. Moving up and downsizing is a great time due to the amount of opportunity.
Paradise Valley luxury home specialist Joan Levinson stated in the Arizona School of Real estate and business journal “We are booming”! Joan was the agent who represented listing of Paradise Valley 2nd highest sale at $17.5 million in which she received multiple offers during the pandemic. She already has $90 million in either closed or pending and ahead of last year’s record pace.
Don’t take my word for it… Joan Levinson is one of the top luxury home agents in the country and if she says its booming… its booming! There is a lot of opportunity in the luxury market available for any price bracket. Just be smart and buy low… Here is 8 mistakes to avoid when buying a luxury home
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