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Arizona’s Big Car Country!

Barrett-Jackson and more than half-dozen car auctions have rolled into town this week. It’s a good week to talk about cars – all kinds of cars. 

Did you know that Arizona is the hub for testing self-driving vehicles? Uber, Lyft and Waymo test their vehicles here. Current state governor, Ducey, being supportive of driverless cars, signed an executive order in 2015 allowing testing on public roads.

Testing cars in Arizona is nothing new to the state. Next spring will be the 25th anniversary for Toyota’s proving ground.

General Motors, Nissan, Ford and Chrysler are a few of the others that use us for their testing ground.
 
Why is this? The #1 reason is the weather. We have consistent temperatures, low winds and low rainfall. Also, AZ high summer temps allow for “worst case scenario” testing as well. One more reason is the privacy of the desert. There are plenty of remote locations away from the prying eyes of the public and competitors

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Highest Sale Ever in Paradise Valley – $15,560,000!

That’s not all —  this property sold for $1,102 a square foot!

I wish I could give you the inside scoop, but the listing agent isn’t disclosing any details on the sale..

Here’s a look at all sales in December and a comparison with December 2016:

Dec  2016 — 26 sales with an average price per square foot of $362.

Dec 2017 — 27 sales, price per square foot average (removing the $1,102 anomaly) was $341.

While the sales volume remains strong, the prices are flat – on the Cromford Report graph they are even slightly lower than the sales pricing figure for August 2014.

 

DECEMBER SALES DETAILS

 

 

MAP OF DECEMBER SALES

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Staying Ahead of the Curve = Sustainability

The luxury market is ever evolving and being redefined. As the global leader in luxury real estate, the Sotheby’s International Realty brand commissioned a research survey to unveil emerging trends and keep our focus on the luxury homebuyers of tomorrow.

This study studied high-earning individuals from 5 different countries to gain insight into this emerging luxury consumer and the understanding the changes they are bringing. They are defined as having $250K – $1M in investable assets.

The currently dominant Millennial Generation are quickly becoming the New Affluent. By 2020 they will be receiving the largest transfer of wealth in the history of the world – some 26 trillion.

Looking at the US here are the key motivators driving their home purchasing decisions:

  1. Their Consumer Confidence is at 95%
  2. “I am doing well in my job currently,”
  3. “I am at the right stage in my life for a luxury purchase.”
  4. “I want a home to fit a particular lifestyle.”

I believe Arizona is well positioned and very desirable for this emerging luxury consumer.

  1. We are a popular sun destination state.
  2. Our economy is growing.
  3. We have attractive lifestyle choices and a far less volatile environment than the large coastal cities.

People want to live here!

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We’re Not Just Your Neighborhood Realtor!

Celebrating 70 years of being the local leader in luxury home sales, Russ Lyon Sotheby’s International Realty takes the International in our name seriously. With the Sotheby’s brand we have been marketing globally for years. This month we are taking our international marketing commitment literally with a road trip to China.

A team of 3 is off to Shanghai for six days of presentations to 6,200 financially qualified Chinese Buyers and Investors. 

The Russ Lyon showcase of 30 homes includes a $14 million 173-acre parcel of land off State Route 89A in Sedona, the priciest home listed in Desert Mountain, $12 million, a $2 million-dollar home in Tucson and of course, a unique $3.3 million home in Paradise Valley.
 
As they say, “we put our money where our mouth is”.  So, if you are wanting your home to be listed with a firm offering more than local market exposure, then Russ Lyon, your local Realtor with the Global Reach, and Az Luxury Group, with it’s concierge level of service, is here to serve your interests.  Call us for more details.

 

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November Record Breaking Month in Paradise Valley!

What does a typical November sales month look like?  I’ve been sending this report out since 2010 and the November averages were 21-24. November 2016 there were 21 sales.

 
This made me curious to see how far back I’d have to go to find a month equal to this month. Unbelievable — I had to go back to 2004 to even break 30. 36 sales closed in  November 2004 .

The pricing breakdown between 2004 and 2017 was an interesting comparison. In November 2004, 36% of the sales were under $1M — 38% of November 2017 sales were over $2M.

Also fascinating is this table showing sales vs current active listings by pricing. I’m not surprised at the months supply of listings over $3M.


However, the $1.5 to $2M price range is shocking! Great for buyers — not so great if you’re selling in this range.

 

NOVEMBER SALES DETAILS

MAP OF NOVEMBER SALES

 

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Sales Up — Buyers Savvy

Although the number of sales in October were one less than October 2016, the dollar numbers are quite different. October’s total dollar sales were $61,324,298, 11% more than the $55,421,205 in October 2016. Before you get excited and think prices are greatly appreciating, let’s look closer.

In 2017 12 of the 33 sales were over $2M, compare with only 7 in 2016.  This accounts for the higher total dollars. Here’s a look at the prices per square foot July – October, broken down by price range. As you can see there isn’t a substantial change between the years – except for a sizeable drop in the $2M – $3M range. As the headline says, “buyers are savvy!”

 

 

 

October Sales $410K – $4.7M

OCTOBER SALES DETAILS

 

 

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Every Home Has a Story

What is your home’s story?

A home is more than a place to live – it’s a lifestyle. The New Affluent are more interested in the experiencing rather than the personal goods. The first thing we do when listing a home is ask our sellers to tell us the story of your home.”

Yes, buyers may need a certain number of bedrooms and baths, but the buying experience is so much more than that. The truth is it’s the lifestyle that matters, the experiences they imagine creating that makes them buy.

What is your home’s story? Have you thought about it? We find home stories fascinating and would love to hear yours.

And if you’re thinking of selling your home, please contact us. We would love to market the story of your home to attract the right buyer that is ready to move in and create personal experiences of their own.

What’s your story?

 

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Impressions of Mountain Shadows Resort

Mountain Shadows Resort with long grey walls extending down Lincoln Drive makes one wonder about the resort experience.  It has a totally different vibe from the original Mountain Shadows Resort we remember from the 80’s. Today’s version is a prime example of the minimalistic simplicity of Mid-century Modern design.

Wanting a Mountain Shadows resort experience, we chose to lunch at Hearth 61 Restaurant, which was made memorable by our server with her friendly personality and expert recommendations on the menu and wine list.  Her rave review of their Sunday Brunch had us thinking that brunch may just have to be our next Hearth 61 repast.


Of course we also won’t miss paying a visit to Rusty’s at the Short Course, named for Russ Lyon our namesake and founder of Russ Lyon Sotheby’s International Realty. Rusty’s is known for good-natured fun, food and drinks after golf – Rusty would have approved!

More impressions abound but we do know this, those grey walls help one escape from the buzz of a busy street and a busy world. We are very familiar with the new hotel condominiums, the beautiful new villas on the resort grounds and of course, the new construction single-family homes adjacent to the resort.  To enjoy this privileged lifestyle give us a call. We would be delighted to introduce you to homeowner purchase options.

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3rd Quarter Luxury Report – Sales Up — Prices Down

Here’s an overall look at the Luxury Market in the Valley: Compared with 2016 third quarter closings, total sales increased 22%. Based on the quarterly sales rate, here’s a look at current Supply vs Demand by price range:
  • $500,000 – $1 million went from 6.5 to 5.0 months of inventory
  • $1 million – $2 million went from 13.0 to 10.5 months of inventory
  • Over $2 million went from 32.1 to 24.3 months of inventory

Despite this improvement in months of inventory, pricing is not as encouraging:

  • $500,000 – $1 million managed a 0.7% increase in average $/SF from $192.47 to $193.89
  • $1 million to $2 million — the average $/SF dropped -1.2% from $280.84 to $277.39
  • Over $2 million saw a 14.3% decline in average $/SF from $455.43 to $390.34

Scottsdale and Paradise Valley make up most of the luxury sales, and sale prices can widely vary between the two. It is really about location. The close-in PV Luxury Corridor fairs better than North Scottsdale, and I see this trend continuing.

 

 

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September Sales Up — Inventory Unchanged

28 sales closed in September, while the number of active listings as of the first of October didn’t change. In September 2016, 14 new listings came on the market in September with only 20 closings.

21 of the 28 sales in September were under $2 M.  3 sales were over $3 M, and the average days on market for these was 344.

My takeaway – even though supply is lower than I’d like to see, you must price if right if you want it to sell. Luxury buyers today are savvy.

Here is a close up look at the details for September sales. SEPTEMBER 2017 SALES REPORT DETAILS