The Lifestyle Collection has been writing and distributing The Luxury Property Report for North Scottsdale, AZ since our inception as a real estate company. Each issue will include luxury houses for sale in Scottsdale as well as real estate market data for the area. We also have articles about real estate in general that are both helpful and interesting. We feature a charitable organization we support each issue as a firm that believes in giving back to the community. When we sell a house that we market or assist a buyer in finding a home to buy, we ask the client to nominate a preferred charity for us to donate to. We donated more than $12,500 to several charities last year based on homes we sold in Scottsdale.
AN OVERVIEW OF THE LUXURY HOME MARKET IN THE PHOENIX METRO AND NORTH SCOTTSDALE
The general market news for the luxury house market was pretty encouraging as we went to press with this issue in January 2020. The total number of properties sold in the Phoenix Metro Market between January 1 and December 31 is somewhat higher than the number sold in the same period last year. During this time period in 2018, 2,092 residences were sold. During the same time period in 2019, 2,245 transactions were completed, an increase of 7.3 percent. In the three zip codes that make up North Scottsdale luxury house sales were slightly ahead of last year, with 669 homes closing escrow in 2019, compared to 649 in 2018. This is a 3.1 percent rise in the number of units sold. Other figures reflect a more positive picture. Due to lesser inventory availability, the number of days on market decreased somewhat from 215 to 206 days, a moderate improvement. Instead of a considerable increase in price per square foot, the price per square. The median price per square foot in 2018 was $345, and it grew to $366 in 2019. This is a 6.1 percent gain, which corresponds to an additional $103,761 in potential upside for a 4,941-square-foot property.
As we enter the busier season, there is one area of concern, but there are also reasons to be optimistic. The source of concern is a slower summer sales season in 2019 compared to 2018. During the 2018 summer, 171 residences were sold, according to the number of homes that went under contract. During the same time period in 2019, however, only 132 residences were under contract, a 22 percent decline. We are expecting that this was a seasonal oddity that will correct as the year progresses, because we are not seeing a regular drop year over year. When it comes to luxury inventory, there is certainly some optimistic statistics. The quantity of available residences, but more crucially, the days of inventory, are used to calculate inventory. The amount of days it would take to empty all available inventory at the current sales rate is referred to as days of inventory. This is always high in the luxury sector compared to the general market. The number of days of inventory remaining has been at one of the lowest levels in years over the last year. There were 351 days of inventory available as of December 31, 2019, which is much less than the running average of 605 days and significantly less than the 684 days available in December 2016. The housing market in the Phoenix metro area is experiencing a shortage of inventory. There were only 39 days of inventory in the market for all homes listed below $1,000,000, and for $500,000 and less, it lowers even further to 33 days, the lowest level since at least 2011.