Luxury listings are getting more expensive in Scottsdale, Phoenix
PHOENIX (3TV/CBS 5) - Despite rising interest rates and economic concerns, the luxury housing market in the Phoenix metro area is popping.
“A million dollars and up we consider luxury in our local area. Every single price spectrum a million dollars and above, we’re seeing year-over-year increases in pricing,” said real estate agent Trevor Halpern. “Especially in the two-to-three-million-dollar range, we’re seeing a 12.4% year-over-year increase in price.”
During our interview, we toured a new build in Scottsdale, listed at $4.8 million. “In the luxury space, a home like this, it was purchased as an investment property, torn all the way down, rebuilt,” Halpern told On Your Side. “This is where we’re seeing developers make money. The quick flip, the small flip, those are getting harder and harder to acquire, harder and harder to find, and they’re getting harder and harder to make money on.”
The increase in pricing for luxury homes comes down to simple supply and demand.
“That demand for luxury real estate is increasing because Arizona is becoming a spotlight for high earners,” Halpern said. “We are the number three state for people who are earning over $200,000 a year to move here.”
When those high earners move into the Valley, a lot of them feel like they’re getting a deal.
“Let’s say you picked this house up and dropped it in Los Angeles. Depending on the neighborhood, this could be a $10 million house. You pick this up and you drop it in Aspen, it’s probably $10, $12, $15 million,” Halpern said. “So Phoenix and the greater Phoenix metro area, Scottsdale, Paradise Valley, are still perceived by many of the people in those higher value locations as a value play. They can come here and get better bang for their buck.”
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