Phoenix Luxury Market Surges in September, Driving Overall Price Gains

In September, the luxury housing market in Greater Phoenix saw a notable resurgence, particularly in the ultra-high-end segment. After a slow summer with zero sales over $10 million in August and just one in July, September produced six closed sales above $10 million. These properties averaged an impressive $1,389.41 per square foot, totaling nearly $80 million in dollar volume. This small but powerful group of sales had a measurable impact on the market, lifting the overall average price per square foot from $284.20 to $287.16. That’s a 2.1% increase driven by just 0.13% of sales, underscoring the outsized influence of the luxury segment on broader market statistics.

However, homes above $10 million make up such a tiny fraction of the market that their data can be extremely volatile month to month. A better measure of the luxury segment’s performance is homes priced at $2 million and above. In September, there were 116 such sales, compared to 4,563 sales under $2 million. The average price per square foot for homes under $2 million was $263.52, a slight 0.6% decrease from September 2024. Meanwhile, homes priced at or above $2 million sold for $729.59 per square foot, reflecting a 7.2% year-over-year increase.

Not only are luxury homes commanding higher prices per square foot, but unit sales are also rising across both segments. Closings under $2 million rose by 10.2%, while sales at or above $2 million climbed 11.5%. This dual increase in volume is a positive sign for agents and brokers working in all price ranges, but especially encouraging for those targeting the high-end sector. The data clearly shows two diverging markets, one appreciating and the other slightly softening, illustrating the resilience of affluent buyers despite broader economic concerns.

Without the boost from the luxury sector, the overall housing market in Phoenix would likely be reporting negative appreciation. This pattern extends into the condo and townhouse market as well. While closed condo/townhome transactions rose by 10% to 706 units, their average price per square foot declined slightly by 1%. It’s clear the luxury sector is not just back, it’s pulling the broader market upward with it.

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