By Philip Haldiman

Independent Newsmedia

If you’re going to purchase a large, million-dollar luxury home in Peoria, most likely you’ll be living in far north Peoria.

Peoria has seen a dramatic jump in luxury homes sales in the 85383 ZIP code. The ZIP code encompasses the area near the city’s northern border where most of the city’s high-end homes are located and where many more are being built.

Over the last five years, sales of luxury homes in Peoria — more than $1 million — have seen significant growth, increasing 450%.

The city saw five luxury home sales in 2015 and 24 in 2018. If the trend continues, this year’s total is likely to surpass 2018.

Sales are up 30% year -over-year, with 12 sales this time last year compared with 16 sales in the same time period this year.

Economist Elliott Pollack said sales in Peoria reflect the luxury home market throughout the metro-Phoenix area, plus a little extra.

“There is definitely more selling in that market as a whole,” he said. “But with such a small base in Peoria it is tough to draw a conclusion.”

Some local Realtors see the growth in the million-dollar home market as a turning point for the city.

Realtor Rebecca Durfey said not only were there 24 luxury homes sold last year, but also more than 20 tract homes built in the last year-and-a-half, and an estimated more than 30 built this year, all in the million dollar range.

“These are not even custom homes and most not on acre lots. We still have those homes out there being built, but when a buyer is willing to pay in the million-dollar range for tract builder semi-custom homes on half acres, that tells me we are already in the luxury home market,” she said.

“The general market won’t see it yet because they don’t know what buyers are paying for those homes, but when they turn over it will be more evident.”

Ms. Durfey believes the city is still well below the inventory needed to satisfy the luxury home buyer. Amenities such as detached garages, casitas and RV garages are hard to find, she said.

“Until that picks up, those homes that hit the market will have a nice premium and, in my opinion and experience, will sell quickly,” she said. “The supply and demand will keep the prices going up.”

Benjamin Katz, a Realtor with Lake Pleasant Real Estate, said the speed at which million-dollar homes have been selling in Peoria is also significant — about 40% quicker than this time last year.

He said the economy and housing market has continued to go up, so values have increased.

The 85383 ZIP code has a median age of 38 and a population of 46,118, about 90 percent of the workers being white collar with an average household income of about $130,000, according to Point2Homes.com.

It is home to high-end communities such as West Wing, Cantera Gates, Vista Montana and Blackstone

Mr. Katz said that as the 85383 area continues to gain in popularity, Peoria will see more and more homebuyers coming from locations where $1 million for real estate isn’t a big deal, such as North Scottsdale locally, as well as California, Colorado and Washington nationally.

“National builders have realized there is demand for the $800,000-$1.2 million homes in 85383, so they started building and offering that type of product. Before 2016, the only way you could have a million-dollar property in 85383 was by buying a custom resale or buying a vacant lot and building a custom home,” he said.

“I’ve definitely seen the change over the last decade. Ten years ago you mention Peoria and people said, ‘Where?’ Today I’ve had other real estate brokers from Scottsdale and the East Valley say 85383 is a hot market, or 85383 is on fire! Those same people didn’t even know where Peoria was 10 years ago.”

From Bell Road north, the city projects nearly 6,000 new single-family home units in the next five years — 2,935 in the central corridor and 3,034 in the northwest sector, spanning the Mesquite and Willow council districts.

Peoria city officials estimate 93 percent of the projected growth over the next five years will happen north of Bell.

Ms. Durfey said the luxury home market will, no doubt, be a part of that growth.

When she was a new agent nearly 20 years ago, Ms. Durfey said Realtors believed Peoria would never have a luxury market and unlikely ever see homes over $500,000.

Ms. Durfey estimates the Peoria market started seeing sellers and buyers more comfortable with the million-dollar mark on a more consistent basis about four to five years ago.

The first $2 million home she listed was in 2010.

“I think the fact that we are seeing the luxury home market continue to build and, I believe, get stronger, is symbolic of the desirability of Peoria – from the retail to the restaurants to the car dealerships to the entertainment,” she said.

It’s all here, rather than spread out between Tempe, Phoenix, and Scottsdale.”

Philip Haldiman can be reached at 623-876-3697, phaldiman@newszap.com, or on Twitter @philiphaldiman.

Peoria luxury home sales

Luxury home sales are $1 million or more.

2014: 6

2015: 5

2016: 7

2017: 16

2018: 27

2019: 16 (YTD)

Source: ARMLS