Luxury home sales over $1 million sky rocketed in metro Phoenix in 2020, according to the Cromford Report.
The luxury market soared after pandemic restrictions were lifted. While they were already up 7.7% over 2019 at the end of June, by the end of December annual luxury sales were up 48.7%, securing an enormous record for 2020 at 2,575 sales over $1 million, the report said.
While the Sun Cities had no $1 million home sales in 2020, sales in the retirement communities were brisk and some came close to that milestone.
According to Movoto, the median home proce in Sun City reached a peak of about $245,000 in November 2020, but began to fall into 2021, dropped to about $227,000 in February 2021. Still, homes were selling for amounts above the median.
A single family home with 1,925 square feet on a .24-acre lot with a golf course view sold for $375,000. On the shore of a lake, a single family home with 1,832 square feet on a 9,060-square-foot lot sold for $450,000. A single family home with a detached outbuilding with 1,878 square feet on a 1.15-acre lot sold for $405,000. A single family home with a golf course view and a pool with 1,924 square feet on a 9,300-square-foot lot sold for $396,000.
In Sun City West the peak was during the summer with a median price of more than $330,000. But that figure, after a drop to about $300,000 in November, took a steep ascent back up to about $330,000 in February 2021, according to Movoto. As in Sun City, homes were selling for higher than the median in 2020.
Also in November, there were several higher priced homes in Sun City West. A large single family home with a golf course view with 2,290 square feet on a .26-acre lot sold for $439,900. A large single family home with 3,027 square feet on a .24-acre lot sold for $589,000. A large single family home with 2,717 square feet on an 8,880-square-foot lot sold for $499,000. The highest prices was a large single family home with 3,027 square feet on a .27-acre lot that sold for $742,500.
There were 111,036 new listings added to the Arizona Regional MLS in 2020, only 38 more than 2019, while 100,650 sold, according to Cromford Report.
As of Jan. 10, there were only 6,162 listings still active in the MLS, which is the lowest supply count recorded in at least 20 years, and to make matters worse, 10% of those properties are outside of the greater Phoenix boundary, the report stated.
Ms. Durfey says listing will sell fast and inventory will continue to be low into 2021, depending on the market.
She said the most frequently asked questions she gets lately are “Are we in a bubble?” and “Is this market going to crash?”
“I completely understand the concern,” she said. “So many of us were around for the housing crash just a little over 10 years ago. I was working with buyers and sellers then, too. It’s still fresh in the minds of those who were impacted one way or another. However, this is not that type of market and we are not in a bubble. It is hard to convince people that is the case, but it’s just not. It’s true that the market will decide how long we have price increases or low inventory, and it can adjust, but the numbers right now do not support that it is adjusting yet – or even seems to be trending that way.”
Editor’s Note: Sun Cities Editor Rusty Bradshaw contributed to this story.