Article Courtesy of AZ BUSINESS MAGAZINE | Written by ELINOR TUTORA

In the past five years, the Metro Phoenix market median home price has nearly doubled. In Phoenix, the median home price is $405,000 compared with $215,000 five years ago, according to Redfin market data. From April to June, houses across town hit their lowest number of days on the market, in Phoenix that number was 22 days.

According to Redfin market reports, the median sale price of single family homes in Scottsdale is $900,000, up 20% year-over-year. In Paradise Valley. The median single family home median sold for $2.8 million, up 34% year-over-year and more than doubled since the end of 2016.

Since October 2020 32.7% of homes in Scottsdale sold over list price.

The luxury housing market has been subject to the same trends as the rest of the market. Low inventory, supply chain issues for new builds and demand and rising prices all affect both markets.

At the same time, people are migrating to the county for the luxury market for the same reason as the rest of the market. Maricopa County is one of the fastest growing areas in the country, and it is much less expensive than other areas.

“The same house someone might be able to purchase here for $6 million might have been $12 million in the Bay Area,” Babbi Gabel, a founding partner at RETSY, explains.

About half of the houses Gabel’s clients are looking for are second homes.

But what makes a luxury home luxury? Gabel describes them as homes that are custom, have custom finishes or have a unique aspect starting at a price point of about $1.5 million.

Five to 10 years ago, Scottsdale and Paradise Valley were not a $5 million market, nowadays the average price ranges from $4 to $6 million. Heightened materials cost has led to more expensive remodels and new builds in the luxury housing market.