Arizona’s Luxury Housing Market Is Breaking Records While the General Market Struggles

October 2026

There are two very different housing markets in Arizona right now.

In the general Metro Phoenix housing market, pending sales are declining, inventory is increasing, and the supply/demand ratio has dropped to just 26.26%, the lowest reading in our historical market-health data going back to 2019.

But something remarkable is happening in Arizona’s luxury housing market.

Homes selling for $3 million, $10 million, and $14 million or more have already broken their previous annual sales records, with more than two months remaining in 2026.

Luxury Home Sales Are Setting Records

The numbers are impressive.

These price ranges overlap, but each has already exceeded its previous full-year record.

The most dramatic increase is happening above $10 million, where 58 homes have already sold, compared with 33 during all of 2025. That’s an increase of nearly 76%.

To put that into perspective, only four homes sold above $10 million in 2019.

Even the ultra-luxury market is setting records. Nineteen homes have already sold for $14 million or more, compared with just two in 2023 and a record 15 last year.

Luxury Inventory Is Being Absorbed Faster

What I find particularly interesting is that luxury sales are increasing while the general market is experiencing declining buyer demand.

At the current sales pace, the number of months required to absorb existing luxury inventory has declined substantially.

For homes priced above $3 million, supply has decreased from 10.65 months in 2025 to 8.69 months.

Above $10 million, it has fallen from 35.89 months to 16.32 months.

And above $14 million, supply has declined from 35.27 months to 20.85 months.

These are significant improvements, especially considering how much inventory remains available at the highest price levels.

What Does This Mean for Luxury Buyers and Sellers?

Record sales do not mean every luxury home is selling quickly or that home values are setting records.

There are still 808 properties available above $3 million, including 98 above $10 million.

Location, pricing, property condition, architecture, amenities, and competition remain important.

But the market is demonstrating something that would be difficult to recognize by looking only at general housing statistics.

While the broader Metro Phoenix housing market is experiencing some of its weakest conditions in years, Arizona’s luxury housing market is recording its strongest sales activity on record at all three price thresholds.

Whether that momentum continues into 2027 remains to be seen. For now, the contrast between these two markets is remarkable.