High-end homebuyers, particularly those spending more than $2 million, weren’t just looking at metro Phoenix mansions during April. They were buying.
Ten luxury estates priced above $3 million sold in April, up from seven during the same month in 2013. Twenty-eight houses priced between $2 million and $3 million sold, 11 more than changed hands during April 2013.
According to Walt Danley Realty and Mike Orr’s monthly luxury home report, another 28 houses priced between $1.5 million and $2 million were purchased, nine more than in April 2013.
The report tracks the northeast Valley, including Phoenix’s Arcadia and Biltmore areas, but doesn’t include home sales in the West or southeast Valley, so the overall tally could be slightly higher.
Listings for houses priced $500,000 are up from last year, something that doesn’t necessarily drive more sales because buyers have more options and time to negotiate and choose. But sales did climb.
In April, 2,900 luxury homes were for sale in the northeast Valley, compared with 2,214 in April 2013.
April is typically a good month for home sales because many of the deals are started early in the year when the Valley’s weather and many events are a huge draw for the area.
Fountain Hills homes next to golf courses were popular with buyers in April as were new or renovated mansions on multiacre lots in Paradise Valley.
Nationally, home sales are down, except for the most pricey homes. Sales of the priciest 1 percent of homes are up 21.1 percent so far this year, according to real-estate research firm Redfin.com
But luxury-home sales in metro Phoenix are beginning to slow, however, probably because of the Valley’s current triple-digit temperatures. There are about 460 houses priced above $500,000 under contract in the northeast Valley, compared with 552 during the same time last year.
Regardless of the temperature, one important edge metro Phoenix’s luxury market has over other high-priced home areas is price. A $3 million home in Paradise Valley would sell for at least $6 million in San Diego or Miami.
Rent to own
Model homes are vital for many homebuilders to sell houses. The houses sit empty and typically won’t make the builder any money until the community is nearly completed and the house can be sold.
Brookfield Communities is one of the builders using a sale/leaseback program to find early buyers for its model homes.
The developer is selling its model homes in Bullhead City’s Fox Creek to people who might want to retire in the house later. Brookfield then leases the home back for two years.
The homes are priced between $300,000 and $450,000.
Brookfield offered the same deal on 28 model homes in its Verde Santa Fe Community near Sedona.
Source: azcentral.com
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