The summer heat has been visiting upon us coyly then retreating. It will be here to stay soon -- the forecast for Thursday is 102 degrees -- and when that happens we can expect the Paradise Valley real estate market to cool, as it always does.
As I noted in this newsletter last year, our summer pace didn't slow in 2013 as much as usual. So, it will be interesting to see if buyers hang around this year as much as last.
$3 million+ has been such a robust segment lately, and I'm inclined to think those buyers will be especially likely to leave during the summer heat.
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Speaking of closings in the $3 million+ market, there are two additional statistics this week that buttress the trend, but won't show up in the closing stats below:
1. A $4 million property came on market a few days ago, and is already under contract. This home was listed well over $500 per square foot so it wasn't bought on price, either. This was a deal based on quality and demand.
2. One of the closings last week was $2.9 million. So, not quite where we've been drawing the line at the "super luxury" segment of our market, but darn close.
Most of the articles I read about Phoenix real estate are focused on the weakness in our overall market. It's noteworthy that this important trend of the very high end hasn't gotten more attention.
That is precisely why this newsletter focuses on Paradise Valley, and only Paradise Valley: it's very easy to miss important trends when one tries to be "all things to all people."
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Closings
Paradise Valley had $10.6 million in closings with an average price of over $1.5 million. The mix of properties was all at one extreme or the other -- teardown or turnkey. Hence we had an average price per square foot of $351 for a relatively young average age of construction of 1997. Sales ranged from $765k to $2.9 million.
Interestingly, one home sold at auction closed last week. It had been listed at just over $1.1 million and was bid over $1.6 million, ultimately arriving at a sale price per square foot over $360.
I've discussed auctions here in the past, and I think it's something that sellers should consider more seriously. Particularly in the $1-2 million range in PV, where the market won't be as strong as it's been, auctions can be a great way to get a property sold on a firm timetable. As this auction shows, you can also achieve fair value.
If you'd like to learn more about luxury home auctions, please click here.
New Listings
This week's 19 new listings range from $595k million to $9 million. Two properties are already under contract as I write this.
Just one home again this week that I would advise to go see ASAP (my other favorite is the $4 million George Christensen already snapped up):
Remodeled Home in Casa Blanca Estates Guard gated community in the heart of Paradise Valley. This is home 6,500 square feet and includes 5 bedrooms with large closets, 6 bathrooms, and a detached guest house. Open kitchen, vaulted ceilings, wood floors, a resort style backyard with a swimming pool. Offered at $2.5 million. 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
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