Early 2015 Events Disappoint AZ Real Estate Market
As we wrap up the first quarter of 2015 and head into Q2, it’s a good time to check in on the luxury AZ real estate market. With events like Barrett Jackson, the Super Bowl, the Waste Management Open and our usual spring training crowds, we anticipated a strong start to the year. Unfortunately, the Valley events did not spark as much real estate business as we thought it would and the first quarter ended up being far from what was projected.
Coming Back Strong in Q2
However there is good news! AZ real estate activity in April and May has picked up and actually made up for some of lower sales early in the year. And as we dive into June and the summer season, sales continue. Let’s look at specifically the two main luxury markets, Paradise Valley and Scottsdale.
Currently there are 270 active Paradise Valley listings in the 85253 zip code. While this is down slightly from this time last year, the number of closed sales is up a big 50% from June 2014 and about the same as last month. As for pricing, the average sale in this zip code was $2.36m; this is up 26% from last year and 9% from last month. And good news for both buyers and sellers – the number of days the average homes stays on the market is now 105. That is down 40 days from last June and 19 days from May.
In the Scottsdale 85262 zip code, summer is definitely slowing things down. There are 222 active listings. While this is in fact up 11% from June 2014, it is down 17% from last month. The biggest change from this time last year is in closed sales – up 88% and no change from last month. The average sales price is $1.681m, which is slightly up from last year but down 26% from May. Homes in this zip code are on the market for an average 208 days, this is actually a decrease from last month but an increase from last year.
2015 Potential Continues
From both luxury markets we see a trend in increased sales and prices in 2015 as compared to 2014. This is a positive contribution to the economy and shows recovery. While summers are traditionally slower – fewer residents and visitors, vacations, changing scheduled – the second quarter results should be interesting and continue the upward climb.