Market Update September 16th, 2024

As anticipated, Paradise Valley continues to dominate the luxury real estate market, consistently topping performance charts and widening its lead over Scottsdale over the past three years. Paradise Valley and Scottsdale have experienced an impressive 8.5% year-over-year increase, the highest percentages observed in the market. This substantial growth underscores how robustly the luxury sector has performed compared to other market segments.

Not far behind the leaders are Fountain Hills and Rio Verde, which have also shown significant gains. However, Carefree is lagging slightly with only a 2.8% increase. It's important to note that Carefree represents a smaller market, making its annual averages more susceptible to volatility. These fluctuations highlight the nuances within luxury markets of different sizes.

A clear trend emerges when examining the performance of central locations versus more remote areas. Central regions like Phoenix have excelled, boasting an 8% increase—the third-best return among the top 40 markets and the highest outside the Northeast Valley. Additionally, areas not traditionally considered luxury markets, such as Youngtown and suburban locales like Gilbert, have also demonstrated strong growth. In contrast, the Southwest Valley exhibits weaker performance, with Avondale, Goodyear, Laveen, and Litchfield Park all posting increases below 3%, although Tolleson remains near the market average.

The most underperforming markets tend to be in outer locations, including Coolidge, Arizona City, Tonopah, Eloy, Florence, Casa Grande, Gold Canyon, and Apache Junction. Furthermore, areas designated for residents aged 55 and over have faced challenges; both Sun City and Sun City West reported modest gains of 1.7%, while Sun Lakes fared moderately better with a 4.6% increase. These patterns suggest that proximity to central hubs plays a significant role in real estate performance, and demographic factors could also influence market dynamics.

This will be a big week for the economy as Jerome Powell chair of the Federal Reserve speaks Wednesday! Make sure to stay in the know and know what is going on to make the best financial decisions possible! 

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-Tony Robbins

Have a great week everyone!