Here’s why Metro Phoenix’s luxury home market is booming

The local luxury real estate market is currently booming, part of which can be attributed to Launch real estate, one of Maricopa County’s leading luxury brokerage houses, which recorded 38 closings in September 2020 alone, surpassing $ 1 million and showing no signs of slowing down. Az Business spoke to Sean Zimmerman, President of Launch Real Estate, about this growth and what he plans for 2021.

Az Business: Why is there a boom in the local luxury home market?

Sean Zimmerman: There is an element of growth that is fueled by out-of-town buyers who come from markets where home values ​​are considerably higher than ours. And there are others who have realized that they can work remotely since Arizona has a good lifestyle, that they get their money’s worth if they move here.

I think year after year our market has grown stronger. After the COVID shutdown in March-May, we started to see a significant increase in home sales of over $ 1 million. From June to November, we had the best second half of any previous year in terms of home sales over $ 1 million.

AB: What is the price threshold for these accommodations?

SZ: As our market has matured and we’ve seen some values ​​come back, $ 1million is still a price just to say it’s luxury, but we’re seeing a lot more at over $ 2million. , and we have seen records. break the selling prices this year.

I think it’s a combination of square footage, square footage, and square footage. Luxury isn’t just about an area, it’s not just Paradise Valley or Scottsdale. You see luxury sales happening at Queen Creek and Gilbert, Chandler and Ahwatukee. So when you look at more expensive homes like $ 2 million and up, you’re probably going to be in a few key geographic locations and be over half an acre.

AB: What are the trends that you see?

SZ: What is trending or changed in 2020 is the increase in home offices and home gyms and this is a direct result of COVID. We also see more of a home office if there are two people working from home. People need more space in their homes for offices, gyms and for kids coming back from college due to the change in lifestyle. You also see a lot more entertainment spaces set up like swimming pools, outdoor barbecues, and kitchens.

AB: With the increased demand for housing in Arizona, how is the luxury home market helping to dampen that demand and addressing the limited supply of housing?

SZ: We have faced the limited supply of housing as we return to growth mode and this is partly due to the fact that there have been fewer trades and skilled labor. I think we fill and deliver a different market; I think the luxury market has done a good job of attracting and getting people to Arizona. I think builders and planners are more and more active in making up for the lack of supply and continued demand and renovators have done a great job finding ways to reposition a home and I hope all of these things will help. to continue to relieve some of that stress. But I think we’re going to continue to have pressure points due to the lack of supply and continued demand in 2021. I think we’re seeing great growth in the industry and that’s going to help us meet our needs. demand needs and continue to spur us in a positive direction with our real estate and our economy.

AB: What are the prospects for the local luxury real estate market in 2021?

SZ: We’re very bullish on a 2021 grand opening, and I say with a caveat that supply is tight, so where it’s great with demand, we’re going to have restrictions on what we can actually get. . I can not wait to see him. I think people expect the first quarter to be as busy, if not busier, than what we’ve seen in the past few months. I think we’ll see our best quarterback ever. After that, I guess we’re going to continue to have a great and then stable 2021 in the luxury market here in Phoenix.