With the recession disappearing in the rear view mirror, and with buyer confidence and home equity on the uptick, luxury home sales are starting to heat up in the cool climes of Northern Arizona. People are once again making purchases they put off during the recession. Today’s buyers are more confident and second-home purchases are on the rise. Whatever the reason, it is a welcome sign that the economy is finally on its way up after years of decline.
Many still regard a home in the mountains as an expensive luxury, while others find it a refreshing return to a less hectic time and place. Some are lured by the prospect of a new life and a new job in a more desirable location. In Arizona’s high country, the allure may be from a property with historical value, the feeling of community found in a college town, or a stylish abode in a unique locale like the red rocks of Sedona.
The National Association of Realtors reports that Americans are looking for bigger and better homes now. In 2009, the median size of a newly built home was 2,159 square feet. Today, it is 2,384. Over 40 percent of new homes on the market have at least four bedrooms, and many top sellers come with the biggest kitchens and master suites.
Using the criteria that a luxury home is defined as a residential property with a closing price of $1,000,000 or more, the Prescott area luxury market has followed the national market trends. From the high point in 2007 when 29 homes sold within that price range, we went to a low in 2011 of only two homes sold. In 2012, the number went up to five homes and in 2013, the number was four. To date in 2014, the Prescott area has already either closed or opened seven transactions fitting the luxury home definition above. This is a trend that should have us ending the year 2014 with approximately nine to 12 luxury homes sold!
Perhaps the increasing temperatures of the desert floor are driving folks up north – or just that investing in high country real estate has proven to be a wise investment over the long haul. But as the saying goes, they’re not making any more of it. QCBN
Realty Executives of Northern Arizona has nine separate offices represented by 130 real estate professionals. Trust them to help you find the luxury home of your dreams. Check the current listings at www.realtyexecutivesaz.com.
Don Bonnell bio here please
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