Paradise Valley Weekly 262nd Edition - April 25, 2015 Last week this newsletter noted the extraordinary inventory shortages, and rapid fire electronic offers being made on houses just 8 minutes after listing. This week the news continues, with these headlines: Cost of housing soars: How high can it go? New-Home Prices Are on Fire These articles show the cost of new construction is now substantially higher than it was in the previous market peak of 2007. The demand is simply outstripping supply, as housing permits since the last peak just haven't kept up with new household formation. In essence, we're seeing the rubber band snap back. For many years, there was very little money allocated to building homes. We were recovering from a severe economic crisis, and it took a long time for markets to be confident in the rebound.  A major inventory imbalance can't be corrected quickly, so this is going to take some time to play out. It will be interesting to see how much higher prices go. Closings Record closings in Paradise Valley last week: a whopping $34.1 million! This is over double the prior week, which was also strong. The average sale price was $2.3 million, with a range between $626k and $6.5 million.The weighted average year of construction was 1993, selling on average for $391 per square foot. This is an exceptionally strong showing, clearly indicating the demand for luxury homes in Paradise Valley. Listings There are 10 new home listings this week, ranging from $849k to $3.2 million.  Just one home that I would recommend making an effort to see as soon as possible: Exceptional Bargain in Gated Community This 5 bedroom home is 5,175 square feet and has a guest house and a pool -- for under $1.6 million! This isn't a fixer upper, it's a quality home in a gated community. Only downside is the lot is just over 1/2 acre, so those wanting more land will be disappointed. Regardless, there's a lot of value here and it will likely sell in a flash. Call me at (480) 442-7325 to schedule a showing. --> Click here for details To see all of this week's new listings please click here. To see everything on the MLS in Paradise Valley please click here. That's all for this week, I'll be back next week with all the latest in Paradise Valley real estate. Thank you, Alex Goldstein iParadiseValley.com (480) 442-7325   (c) 2015 Alex Goldstein PLLC