Here is an analysis for the first half of 2010 for the Phoenix and Scottsdale Luxury Condo Market. I define the luxury condo market as condos with asking prices in excess of $1 million.
During the first half of 2010, luxury condos in Scottsdale and Phoenix were selling at an average of just over 2 per month. Over two-thirds of sales activity took place in Scottsdale with Scottsdale Waterfront Residences and Optima Camelview having the most sales. The remaining 31% of sales were in Phoenix. This year’s performance has already surpassed 2009’s luxury condo sales, where there were only 11 sales in total.
Here is a chart showing total performance for Q1 and Q2 2010:
As you can see, sales were almost equally divided between Q1 and Q2, but what is interesting is how the numbers improved over the two quarters. The average sales price was up just over $100K and the discount of off asking price also improved – from an average of 15% off asking price to an average of 9% off asking price. The average price per square foot also saw an increase of over $66 per square foot. Finally, the days on market also saw a decrease of a little more than a month.
I also wanted to break this same information out into each of the cities.
Here are the results for Scottsdale’s Luxury Condo Market for Q1 and Q2 2010:
Second quarter performance for Scottsdale condos was twice that of the first quarter. We are also seeing the same trends we saw in the combined numbers, but more dramatically. Average sales price was up significantly in Q2 as was average price per square foot. Average days on market decreased by almost three months. The sales price to list price ratio also improved, but not as much as we saw in the combined figures.
Here are the results for Phoenix’s Luxury Condo Market for Q1 and Q2 2010:
Unlike the Scottsdale luxury condo market which picked up speed as the year progresses, the Phoenix luxury condo market saw a large dropoff from Q1 to Q2. 75% of the sales in Phoenix took place in the first quarter of 2010. Average sales price decreased as well as average price per square foot. Additionally, discounts off of asking price increased. However, we did see the average days on market decrease slightly.
Overall the luxury condo market in Scottsdale and Phoenix is performing very well in 2010. Ideally, Phoenix condo sales will pick back up, but we are still ahead of the entire year of 2009 at this point.
Disclaimer: Information herein deemed reliable but not guaranteed. Data and information was pulled from the Arizona Regional MLS (ARMLS) as of 7/1/2010 and can change at any time. The analysis looks at resale luxury condos in Scottsdale and Phoenix over the first two quarters of 2010. There may be new home inventory in these figures if the developer is using the MLS to market its homes.
Copyright © 2010 Heather Tawes Nelson
