Below is some info from The Cromford Report.  Here they explain the impact the Luxury Market has on the averages for the overall market.

 

Oct 5 - We have mentioned a couple of times that the luxury market came back in September. Exactly what do we mean?

Well for a start, there were 6 closed sales of homes over $10 million in September, following 0 in August and 1 in July. The average price per square foot for these six homes was $1,389.41. We can't compare this price with a year ago because there were no closed listings over $10 million in September 2024.

That's almost $80 million in dollar volume and these 6 homes had an outsize effect on the overall average price per square foot. For all areas & types in September we saw an average price per square foot of $287.16. If we narrow this down to Greater Phoenix only, then it barely moves to $287.68. If we filter it further to single-family detached homes then it moves up to $290.31.

Taking out the six homes over $10 million drops the average by more than $6 to $284,20. So 0.13% of homes impacted the $/SF by +2.1%.

Obviously the market over $10 million is rarefied and small, and the numbers jump about wildly from one month to the next. If we look instead at the market for homes listed over $2 million then we get a slightly less volatile situation. In September there were 4,563 closed listings below $2 million and 116 at or above $2 million.

  • those under $2 million sold for an average of $263.52 per square foot, down 0.6% from September 2024
  • those at or over $2 million sold for an average of $729.59 per square foot, up 7.2% from September 2024

We can clearly see the markets are very different to each other. Unit counts were up 10.2% below $2 million and up 11.5% at or above $2 million. Not a large difference there, and the increased volume in both sectors is good news for agents, but the change in average $/SF over the last 12 months is positive for the upper tier and mildly negative for the lower tier.

We are currently reporting positive appreciation for the overall market, but without the luxury market, that appreciation turns negative.

In the condo/townhouse market we are also seeing a rise in closed units, up 10% to 706. But price appreciation for condo/townhouse properties is also down slightly by 1%.