I was recently asked on Periscope (follow me at @DeanOuellette for home tours) about the market and if there are any good deals in the Chandler and Phoenix housing markets.
If you were to ask me what the best deals in the market are right now, I would say luxury condos.
Typically the luxury market trails the median part of the market by about 12-18 months in Phoenix, and condos trail single family detached homes by about a year, too. So to get a good idea of what the future holds in store for the luxury condo market, you can typically look at the the median single family home in the Phoenix market from 12-18 months ago.
We know the single family housing market has risen about 8-10% in many areas in the last 18 months – most of that increase has been in the last 6-7 months.
If we look at the Phoenix luxury condo market, and the condo market in whole, in the first half of 2013 compared to the first half of 2014 here is what we see:
The non-luxury condo market Avg price in the last year has gone from $122k, $117/sqft with 79 days on the market to $116k, $112/sqft and 82 days on the market.
The luxury condo market in the last year had an average price of $518k at $294/sqft and 109 days on the market to $528k, $298/sqft and 116 days on the market.
Small changes, but pretty flat over the last year, and that is right about where the single family housing market was 18 months ago.
I DO NOT HAVE A CRYSTAL BALL. This is no guarantee where the market is going, anything can happen. But if you were to ask me where the best upside may be in the next 12-18 months, that would be my guess.
How did I determine what constitutes a luxury listing? I took the top 10% of listings sold in the market. For condos, that came in at $300,000. So as of 7/21/15, the definition of a luxury condo unit in the Phoenix market is $300k.
Here is the listing at
945 E Playa Del Norte Dr unit 4002, Tempe, AZ 85281.
Here is a list of all current