The tough economy over the last couple of years really took a toll on the luxury loft market in Greater Phoenix. For the purposes of this analysis, I am defining luxury lofts as those with list prices in excess of $1 million. There are several luxury loft projects sprinkled throughout the Valley, including downtown Phoenix, downtown Scottsdale and Kierland.
In 2008, luxury loft sales were significantly stronger and included projects in Phoenix and Scottsdale. However, in 2009, all of the sales activity was concentrated in Scottsdale. Sales figures dropped off sharply due to reduced demand and decreases in list prices to below the $1 million mark, removing the units from this analysis. As you can see, price per square foot was much lower in 2009, while the average size of the loft purchased increased by almost 800 square feet.
– Kierland Plaza Lofts – Scottsdale, AZ – Two of the three 2009 loft sales were in this development. The 2009 luxury loft sales in Scottsdale took place in two developments, Kierland Plaza Lofts and Third Avenue Lofts.
– Average Sales Price: $1,812,500
– Asking Price to List Price: 94%
– Average Square Footage: 3,144
– Average Price/Sq. Foot: $568.96
– Third Avenue Lofts- Scottsdale, AZ – The final 2009 loft sale was in this development.
– Average Sales Price: $1,210,000
– Asking Price to List Price: 100%
– Average Square Footage: 3,540
– Average Price/Sq. Foot: $341.81
At the end of the first quarter of 2010, there had been no luxury loft sales for 2010. A total of 8 luxury lofts were on the market. Half of the units for sale were located at the Kierland Lofts in Scottsdale. Three of the eight are located at the Hotel Valley Ho in downtown Scottsdale. The final luxury loft unit for sale was located in Phoenix at the Artisan Lofts complex.
Valleywide Units for Sale at the end of Q1 2010: 8
Average Asking Price: $1,605,188
Average Square Feet: 2,657
Average Asking Price/Sq. Foot: $644.52
Disclaimer: Information herein deemed reliable but not guaranteed. Data and information are pulled from the Arizona Regional MLS (ARMLS) as of 1/1/2010 and 4/1/2010 and can change at any time. This blog represents the opinion of the author. No warranties implied or expressed.
Copyright © 2010 Heather Tawes Nelson
