The Phoenix area is seeing a “dramatic increase” in home sales of over $1 million, according to Alexa D’Angelo of the Phoenix Business Journal. Earlier this month, during the course of one week, 40 Phoenix-area homes sold for over $1 million each. Currently, according to Trulia, there are more than 200 $1 million-plus homes for sale in Phoenix, more than 900 for sale in Scottsdale, and more than 350 for sale in Paradise Valley.
“The need for luxury homes is huge and in places like Scottsdale, Phoenix and Paradise Valley the land costs are high and so builders have to build bigger houses to fit with the costs of the land,” said Robert Joffe, founder and associate broker at the Joffe Group. “In a place like Paradise Valley, $1 million for a house is on the lower end. A lot of sales in those areas are knockdowns. It’s kind of the entry point in the luxury market for those areas.”
Despite this high sales and listing volume, Walt Danley, president of Walt Danley Realty believes that 2016’s luxury market is mediocre, given that sales have not risen significantly year-over-year.