The good news in Paradise Valley AZ which is more of a luxury market than any other part of metro Phoenix is that the number of distressed properties has dropped precipitously. At one time in 2010 there were over 105 distressed single family homes, currently there are 43 distressed properties. Of these 43, 4 are under contract and another 7 are actively listed. As this distressed inventory decreases we see prices rise. We see this when we look at the number of homes that have closed in 2011 vs 2012 and their prices. In 2011, 395 single family homes sold in Paradise Valley, of those on 1 acre or more the average price was $1,638,000.
In 2012 the number of closed homes was almost identical, 391, so demand essentially was the same. The average price of homes on one acre or more rose to $1,721,000, an increase of 5% over the year before. While these numbers are not as high as the median price increases in Metro Phoenix one has to remember, the luxury market trails by 18-24 months at the 1.5-2.5 million dollar price point. The other caveat to keep in mind is of the 391 homes sold, 241 were on acre or more, and 319 on 35,000 sq feet or more in 2012. The number of homes on an acre or more increased ever so slightly from 237 in 2011. So things are headed in the right direction for both price and lot sizes.
Another interesting note is the number of new builds in Paradise Valley. Currently there are 12 new build homes built in 2012, or 2013 that are on the market on a lot 1 acre or more. Compare that to 2007 when over 100 were under construction (113). If one wants a new home the options are currently limited. New build construction hit a low in Paradise Valley in 2012 with only 34 new homes being built. Compare that to 2009 when 263 new builds, most of which were started in 2006 and 2007 at market peak were completed.
Realtor | Attorney
The Brodeur Luxury Group | Trillium Properties
8755 E Bell Road, Suite 108 | Scottsdale AZ 85260
Cell (602) 791-0536
Direct (800) 300-0263