When a house within the Silverleaf group of Scottsdale, Arizona, offered for $24.1 million in September, it set a new record because the highest-priced dwelling sale within the state’s historical past. Sitting on 17 acres, the 15,000-square-foot mansion has eight bedrooms, 10 bogs, an indoor basketball court docket, and a 7,500-square-foot visitor home.
That sale broke the report set in November 2019, when Phoenix Suns proprietor Robert Sarver sold his 28,000-square-foot, seven-bedroom, 11-bathroom dwelling in Cameldale Estates for $19.25 million. When that very same property sold once more in October 2020 for $20.9 million, it set one other report—the highest-priced dwelling sale ever in Paradise Valley.
Such transactions are trying much less like outliers and extra like a development for Arizona’s luxurious dwelling market, the place costs are skyrocketing together with gross sales exercise. As COVID-19 reduces journey, retains jobs and faculties on-line, and brings college-age kids again dwelling, patrons are transferring as much as properties that provide extra space and extra facilities.
The residential luxurious market in Maricopa County (the Phoenix-Mesa-Glendale metropolitan space) is “on fireplace,” says Russell Diehl, Proprietor/Designated Dealer for Arizona Community Realty and the proprietor of ArizonaRealEstate.com. Within the $1 million to $6 million value vary, the variety of gross sales is up 49% year-to-date via October in comparison with the identical interval final yr. The greenback quantity of these gross sales rose from $2.74 billion to $4.1 billion over the identical interval, in line with the Arizona Regional A number of Itemizing Service (ARMLS).
“What’s much more dramatic,” Diehl factors out, is the expansion over simply the previous three months. For the interval from August to October, the variety of dwelling gross sales within the $1 million to $6 million vary all through Maricopa County was up 138% in comparison with the identical interval final yr.
Scottsdale has been particularly lively, with the variety of gross sales within the $3 million to $4 million vary—the “hottest section”—displaying “a whopping 82% improve” this yr via October over the identical interval in 2019, says Diehl. For the August to October interval alone, the rise is 285%.
Launch Actual Property, the primary vendor of properties over $1 million in Maricopa County, has seen a virtually 50% improve in gross sales year-to-date over the identical interval final yr. The corporate’s gross sales quantity for the month of October was double that of October 2019. Sean Zimmerman, president of Launch, calls it “the perfect market we’ve seen, perhaps in historical past.”
And Launch’s bigger properties have been promoting quickest. Patrons know they’re going to place in a house health club or a yoga studio, or they’re going to have extra household staying with them, says Zimmerman.
Camelot Houses, a Scottsdale-based luxurious homebuilder, has seen a 26% improve in its greenback quantity of gross sales via October in comparison with the identical interval final yr. “It’s been phenomenal,” says Julie Hancock, Camelot’s managing director. “As a result of the resale market’s so sturdy, lots of people are seeing it as a chance to actually improve their home and their life-style whereas sustaining related funds, as a result of the rates of interest are so low.”
In Camelot’s White Horse group in Scottsdale, all however two of the 50 patrons took the bonus room and visitor casita choices. Hancock says that in all their communities, further house is “the primary factor persons are in search of.”
Patrons are additionally transferring shortly, wanting “properties which are already constructed and able to go,” says Hancock. Camelot has offered out of its present properties however is including extra, together with a continuation of its White Horse group.
Although building prices proceed to rise, the present demand appears nice sufficient to soak up them. Camelot has seen a 13% general soar in materials prices, together with will increase of 44% for lumber, 12% for drywall, 8% for roofing, and about 6% for trim carpentry. However these price will increase don’t appear to be slowing issues down. If something, they’re having the alternative impact, says Hancock. Folks wish to purchase shortly earlier than building prices go even greater.
About half of the demand Launch Actual Property sees for homes over $2 million is coming from out of state. Arizona routinely attracts its share of Californians in search of markets the place their greenback will purchase extra, however this yr has additionally introduced extra patrons from Washington, Illinois, Colorado, New York, and Minnesota. Zimmerman factors to Arizona’s steady economic system, in addition to its “variety of business and alternative.”
“Individuals are migrating to areas which are much less dense, which are nicely deliberate, which have lovely facilities and all the issues that Arizona gives,” says Hancock. She calls Arizona a “long-term play” and expects “nothing however optimistic progress” sooner or later.
Within the meantime, since promoting that $24.1 million Silverleaf dwelling, Russ Lyon Sotheby’s Worldwide Realty has set one other report for Arizona. The agency at present has the state’s most expensive listing: additionally in Silverleaf, the brand new 15,000-square-foot dwelling at 21053 N. one hundred and tenth Method is priced at $27.5 million.