The Luxury Market in Tuscon
August 11, 2021
In Southern Arizona, we define the luxury market as anything over $800,000. Year-to-date 2021 there have been 361 Luxury closings which is a 187% increase from the same period 2020. Through May, we have had 11 closings over $3,000,000. And just last week we closed one over 4 million for the first time in 14 years.
Our company enjoys a nearly 50% market share in Luxury and that enables us to survey our Buyers and Sellers and gather intel that I’m happy to share for your benefit.
Where the Buyers are from: 44.6% Arizona, 12.5% California, followed by Washington, Texas, Illinois, Florida and Colorado.
Reasons for Moving to Tucson: 37% quality of life, 18.7% to be closer to family, 18.1% retirement and 17.5% for employment. Tucson is no longer a predominantly retirement City.
We also learned that for 75% of Buyers the purchase is their primary residence and the remainder a 2nd or 3rd or 4th home. For one Buyer it was their 5th Luxury purchase in the US. It was during the height of the pandemic and this buyer wanted to have a variety of places to visit without the risk of a public hotel. Once he got started, he discovered he liked having the same kind of bed and linens everywhere he went. He “may never go back to hotels.”
Many Luxury purchasers were move-up Buyers from here in the community. They wanted bigger kitchens, more recreation and home offices. I’m amazed by how many pool tables and home gyms transferred via bills of sale this year.
Will the Luxury market slow down? I’m not sure why it would. We’ve absorbed 12 months of inventory and it currently sits at just over 1 month. The ability to work remotely, once discovered, isn’t likely to be lost. The increased demand pushed values up to a median sold price of $1,029,954.; a bargain compared to many markets and the sales are either all or mostly cash.
General trends are soft contemporary, newer, views, gated and of course location. Home offices, home gyms, outside rooms and kitchens are in high demand. In our Luxury Agent Alliance Network meetings I hear an unending stream of Buyers’ needs. They’re still coming.
Due to the interrupted supply chain, most of these Luxury purchases are turnovers in the resale market though lots sales in high end communities are prolific as well. A little more money and luxury in the Old Pueblo can’t hurt.
Laura Kelly Mance, President
Long Realty Company