Luxury Homes in Arizona
Since I began tracking the sales of luxury homes priced at $3 million and above in Arizona in 2000, the market has undergone a remarkable transformation. Initially, only 20 homes were sold annually. Now, the average has surged to more than 60 homes per month. Here are two charts illustrating significant market shifts: the first chart highlights a previous peak in 2006 with 140 homes sold and a peak price per square foot of $616.42 in 2007. Conversely, the market hit a low in 2011, with just 47 homes sold at an average price per square foot of $441.74. It’s noteworthy how long it took for the market to recover; we didn’t surpass the 2006 sales peak of 140 homes until 2019, a 13-year interval, and we didn’t exceed the 2007 price per square foot average of $616.42 until 2021, which took 14 years.
The second chart focuses on the robust double-digit growth in luxury home sales starting in 2017. This significant growth resulted in the market escalating from fewer than 100 homes sold in 2016 to over 600 homes sold annually since 2021. As we enter the third month of 2025, three aspects of the current market are particularly intriguing: the average monthly sales now stand at 75 homes, the average sale price has exceeded $5 million, and the average price per square foot has risen to over $900.
Emerging Areas vs The Town of Paradise Valley
Video of a beautiful home in 85253 that sold for $7.9 Million
Video of a beautiful home in 85260 that sold for $5.5 Million
Segmenting the Luxury Market a bit further
In addition to tracking homes priced at $3 million and above, we also monitor the markets for homes valued at $10 million and $14 million or higher. For all three segments, 2024 was the most successful year on record, and 2025 has started off even stronger. The reason for this additional segmentation is the varying levels of competition at these three price points. For homeowners looking to sell and builders aiming to construct new properties, the inventory varies significantly: there is less than a one-year supply at the $3 million level, over a three-year supply at the $10 million level, and a five-year supply at the $14 million level.
Where to Build?
If you are a builder or homeowner contemplating the construction of a new home, one important question is where to build. The primary consideration should, of course, be lifestyle. For retirees or those seeking a vacation home with a focus on golf, a community in North Scottsdale might be ideal. If your work is in downtown Phoenix, areas like North Central, Biltmore, or Arcadia could be more suitable. However, if your primary concerns are marketability and potential appreciation, my advice is to build as close as possible to the most expensive homes. Over the past five years, 25 homes have sold for $14 million or more, all located in the Town of Paradise Valley, Silverleaf, and Arcadia Proper.
If you would like us to analyze a specific area for you, we are here to assist. Every area has its advantages, but some are more desirable than others. We can recommend specific neighborhoods and even streets that are optimal for building. Additionally, our team can assist in locating off-market properties within your area of interest.
Michael Hankerson, Designated Broker at Link Brokerages | Luxury Division, and a Mortgage Broker (NMLS# 2664119), delivers a client-centered approach tailored to the luxury market, combined with deep local insights from a lifetime spent in the Town of Paradise Valley, Arcadia, and McCormick Ranch. As a member of the Luxury Home Tour, Michael offers unmatched market knowledge and a strategic, data-driven approach that simplifies even the most complex transactions. His expertise in negotiations and robust marketing skills ensure stress-free buying and selling experiences while maximizing exposure for listings. Serving clients across Metro Phoenix to Tucson and Prescott, Michael is deeply rooted in the community and values family, including his twin daughters. Clients also benefit from significant savings with his combined real estate and mortgage services, enhancing the luxury buying experience.
