Baseball hall of famers George Brett and Ryne Sandberg, PGA golfer Pat Perez, NFL defensive end Jared Allen, as well as hundreds of company executives, lawyers and doctors have bought and sold million-dollar homes in metro Phoenix’s poshest neighborhoods this year.
The Valley’s luxury housing market has picked up after too many high-priced listings hit the market and overshot demand from deep-pocketed buyers.
Seven-figure home sales in the Phoenix area were up more than 30 percent in March from the previous year.
“Overall, the first quarter of 2017 was a much busier quarter for million-dollar homes than in 2016,” Phoenix housing expert Mike Orr told me.
Almost 330 Valley homes sold for more than $1 million during the first three months of this year, according to the Arizona Regional Multiple Listing Service.
While most of those houses were in Paradise Valley,Scottsdale and Phoenix’s uptown, Biltmore and Arcadia neighborhoods, million-dollar home sales are also on the rise in some southeast and West Valley communities.
Still plenty of luxury homes to choose from
Music superstar Alicia Keys, baseball Hall of Famer Randy Johnson and former child star Frankie Muniz still have million-dollar homes listed for sale in metro Phoenix.
And there are some other eye-catching pricey houses listed, including a 15,000-square-foot Paradise Valley mansion with a 150,000-gallon lazy river on the market for $18 million.
In the southeast Valley, there’s Los Angeles Dodgers outfielder Andre Ethier’s Gilbert mansion with a huge, kid-friendly backyard listed for $5 million.
In March, there were about 2,000 houses with prices at $1 million or more for sale in metro Phoenix. About 360 of those had price tags above $3 million.
Most Valley luxury real-estate agents are happy to see the uptick in million-dollar home sales, but they also caution their clients prices at that end of the market aren’t climbing at the same paces.
Prices at the top of the market
Million-dollar home sales are interesting or even fun to track, particularly when the sellers are famous athletes and superstars.
But sellers of Valley mansions still aren’t smiling that much about prices.
The price-per-foot of luxury homes in metro Phoenix inched up only about 0.08 percent during the first three months of this year, less than the annual rate of inflation, said Orr.
“That confirms that despite the healthy increase in volume, there is little pricing power among sellers of luxury homes, thanks to the abundant inventory of active listings,” he said.
Orr breaks down the Valley’s high-end home sales by price per square foot to get a more accurate analysis. Million-dollar homes come in many shapes and sizes, from Johnson’s 25,000-square-foot Paradise Valley estate to the new 3,000-square-foot condos selling where Scottsdale’s former Borgata shopping center stood.
Metro Phoenix’s luxury home market could be on a sales roll that could bring up prices more.
Walt Danley Realty of Paradise Valley reports the number of upscale homes under contract to sell climbed 14 percent at the beginning of April, compared with last year.
Contracts on houses priced between $1 million and $1.5 million jumped 40 percent.
Some market watchers think President Donald Trump’s proposed tax plan will benefit wealthy homebuyers more than others and that will keep million-dollar sales climbing.
Unfortunately, summer isn’t the most popular time for million-dollar home sales in metro Phoenix.
So Valley mansion owners trying to sell will have to keep paying their multi-thousand dollar A/C bills to cool their houses for showings until fall.
If you are looking for homes for sale inPhoenix, be sure to contact the best real estate agent in Phoenix. Jeff Barchi has a vast experience in finding the best home in Phoenix for you and your family. Give us a call today!