Luxury Homes Seems to be a Safe-Harbor For The Wealthy
There has been a dramatic increase in the sale of million dollar homes across Phoenix in the past few months. Earlier this month, there were roughly 40 homes sold over $1 million in just one week. Take a look at one of the Chandler homes for sale below.
Chandler Luxury Home Sales Were Strong in 2016
There is an abundance of luxury homes on the market, and our market has just come back from the downturn of 2007, In our luxury market it’s hard to find a house less than a million bucks, there are a lot of them available. Chandler has over 100 homes for sale valued at $750,000 + as of November 2016 and 79 homes in the same price range sold in 2016. Many of these luxury homes sold in Ocotillo.
This market was better in 2014 and early 2015, but the trend is likely related to buyers’ increased desire for newly built homes; and home builders are feverishly building homes all around the Valley. Still Chandler and Gilbert will remain strong market sectors due to the “bang for your buck” pricing.
Some are telling us “If a house was built before 2010 it is considered to be older and less desirable”. People looking for a new home want one with all the newest, latest and greatest technology — just like they do with a smartphone. Buyers want the best smartphone on the market; it’s no different with homes.” Smart Homes are remarkable with regards to what you can do to protect your home, prepare dinner, program your TV…all from your Smart Phone. I have sold several Smart homes in Chandler and in my many years as a Chandler Realtor; I never thought I would be so impressed with the technology.
Most luxury homes on the market are concentrated in Phoenix, North Scottsdale and Paradise Valley. According to data from Trulia, there are more than 900 million-dollar homes on the market in Scottsdale, more than 200 in Phoenix and more than 350 in Paradise Valley.
Phoenix is Attracting The “Rich & Famous”
The need for luxury homes is huge and in places like Scottsdale, Phoenix and Paradise Valley the land costs are high and so builders have to build bigger houses to fit with the costs of the land. In a place like Paradise Valley, $1 million for a house is on the lower end. A lot of sales in those areas are knockdowns. It’s kind of the entry point in the luxury market for those areas. Paradise Valley and Arcadia are no strangers to million dollar knock-downs where people are buying the property for the land alone.
While very high-end buyers don’t rely much on financing, those in the $1 million to $2 million range do, and there may be some growth in that segment, according to Bloomberg. Joffe said for a mortgage on a home more than $1 million a buyer is looking at 20 percent down with a mortgage of $6,000 a month and up.
But, not all realtors agree on the growth of the luxury market. and described 2016 as “mediocre.” But opinions are like belly buttons…
Real Estate As A Safe Harbor
Many of us believe that luxury homes are among the safest investments and when the stock market is trading at record price earnings ratios, and the world economy is in flux, real estate has always been a great hedge and safe investment with very rewarding returns as well. Others believe this market is slower than last year due to the coming election. I suppose all the above play a role in a person’s decision to buy a home or not. Metro Phoenix is still one of the high growth metro areas where real estate is still relatively inexpensive which leaves much room for growth. Feel free to view all of the luxury homes on this website as well as recent sales. If you are looking for a luxury home in Chandler, please call me and read my credentials on this website. I believe you would be hard pressed to find another agent with my experience and education – and success. I too invest in real estate and know how to buy and when to sell. I look forward to hearing from you; especially if you are looking for the best Chandler Realtor!