Market Update - April 2025: Luxury Homes Still in Demand (But Watch for Volatility)

Now let’s take a look at Arizona’s luxury home market, which includes properties priced between $1 million and $5 million. While other segments may be cooling or shifting toward buyers, luxury real estate tells a different story.

📊 Inventory Still Low — Even Below Long-Term Average

• Current inventory in this segment sits at 169.5 days on market

• That’s well below the long-term average of 279.4 days

In the luxury market, longer sales times are expected, but today’s inventory is significantly lower than historical norms — a clear sign that demand remains strong.

💰 What’s Driving the Market?

• High-end buyers are still active, even amid economic uncertainty

• Supply is limited, as fewer luxury homeowners are listing their properties

• This keeps sellers in control in most high-end neighborhoods

⚠️ The Wild Card: Market Volatility

Despite strong demand, economic uncertainty is a real threat to luxury deals. Many luxury buyers rely on:

• Stock portfolios

• Business liquidity

• Investment accounts

Even when buyers are financially qualified, a sudden stock market dip can shake their confidence. In fact, recent contracts have been canceled overnight after a bad day on Wall Street.

🧠 Key Advice for Luxury Sellers

• You still have leverage, unlike sellers in the affordable or mid-range price points

• But stay alert: If economic volatility increases, expect hesitation from buyers

• Be ready to adjust pricing if confidence dips and momentum slows

In short, the luxury market is healthy — for now. Just keep an eye on the economy, especially if your buyer’s money is still in the market.

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