Metro Phoenix home prices hit record in March but sales slowing

The $3.7M Scottsdale estate, sold by Daniel Whitney, features a gourmet kitchen with an oversized kitchen island.

James and Lynn Arthaud paid $3.7 million for this golf course lot estate in Scottsdale.

In one of the priciest home sales of the year, 5780 Saguaro LLC, a Delaware limited liability company, paid cash for a nearly 5-acres lot estate.

The $17.5 million Paradise Valley mansion sold by Larry P. Clemmensen features soaring ceilings and Camelback Mountain views. The listing agent was Joan Levinson of Realty ONE Group.

This 8,514-square-foot property in Scottsdale sold for $7.75 million. L and V Properties II LLC sold the six-bedroom estate. Screech Investments LLC was the buyer.

Gregory and Eileen Milzcik paid $5 million for a 9,000-square-foot estate in Scottsdale.

The $5 million Scottsdale estate, purchased by Gregory and Eileen Milzcik, comes with a resort-style pool.

This 9,000-square-foot property in Scottsdale sold for $5 million. Eric and Vizma Sprott sold the hillside lot estate. Gregory and Eileen Milzcik were the buyers.

Jeffrey and Gabriela Gilbert paid $2.9 million for a 5,645-square-foot estate in Scottsdale.

The $2.9 million Scottsdale estate, sold by MNF Investments, LLC, comes with an open floor plan that features natural reclaimed beams.

The $2.85M Scottsdale estate, purchased by L & D US Investment Partnership, comes with a resort-style pool.

L & D US Investment Partnership paid $2.85 million for an estate in Scottsdale.

Michael J. Gandy, a manager of 8508 E. Sweetwater Avenue LLC, sold this $2.85M Scottsdale estate that features arched doorways and stone accents.

Paul and Amy Goldschmidt sold their Scottsdale DC Ranch mansion for $2.54M.

The $2.54M estate, sold by Paul and Amy Goldschmidt, has a backyard with a sparkling pool, lush landscaping and a covered patio.

The $2.54M estate, sold by Paul and Amy Goldschmidt, has an open floor plan with arched doorways.

Richard and Theresa Davis paid $4.48 million for a new construction estate in Paradise Valley.

The $4.48M estate, sold by BJAN Family Enterprises, LLC, has a backyard with a pool and a sunken ramada.

The $4.48M estate, purchased by Richard and Theresa Davis, has a master bathroom with a freestanding soaker tub.

Michael Greenbaum paid $3.5 million for a contemporary-style estate in Paradise Valley.

The $3.5M estate, sold by Jeffrey Gray and Jeffrey McNabb, has walls of glass that showcase full views of Camelback Mountain.

John and Erin Gogolak paid $3.2 million for a hillside lot estate in Paradise Valley.

The $3.2M estate, sold by Jean Ambler, has balconies that offer mountain views.

Vontaze and Brandie Burfict paid $1.8 million for an estate in Queen Creek.

The $4.35M estate, sold by Charleston Properties, LLC, has a backyard that has a pool, wet bar and a putting green.

The $4.35M estate, purchased by Donald and Cathy Schuh, features an open floor plan and custom light fixtures.

Donald and Cathy Schuh paid $4.35 million for a mansion in Scottsdale.

Donald and Cathy Schuh paid $4.35 million for a solar powered estate in Scottsdale.

Mills and Loretta Brown paid $4.06 million for a Paradise Valley estate.

The $4.06M ranch-style estate, sold by Michael S. Dorn, has an updated kitchen featuring marble countertops and a walk-in pantry.

The $4.06M estate, purchased by Mills and Loretta Brown, has a covered patio that offers mountain and city light views.

Larry D. Blair paid $4.85 million for this Paradise Valley mansion inspired by Frank Lloyd Wright architecture.

The $4.85M contemporary-style estate, sold by Quartz Valley Development Inc., has a series of glass walls that offers mountain views.

Bryan and Elizabeth Saba paid $3.38 million for a hillside lot estate in Paradise Valley.

Bryan and Elizabeth Saba paid $3.38 million for a hillside lot estate with a pool in Paradise Valley.

The $3.38M estate, sold by James and Phyllis Rector, has mountain views.

Charles Jost paid $3.83 million for an estate with a resort-style pool in Paradise Valley.

The $3.83M estate, sold by Pammy and John Markle, III, has arched windows and doorways.

Former Arizona Cardinals head coach Steve Wilks' sold $2.5M Chandler home.

Former Arizona Cardinals head coach Steve Wilks' $2.65 million home.

Former Arizona Cardinals head coach Steve Wilks' sold $2.5M Chandler home.

Former Arizona Cardinals head coach Steve Wilks' $2.65 million Chandler home.

The $3.1M estate, sold by 16117 E Shooting Star Trail, LLC, has interior columns and coffered ceilings.

The $3.1M estate, purchased by Tom and Jane Kadlec, features rough-hewn wooden beams and arched windows.

Tom and Jane Kadlec paid $3.1 million for a golf course lot estate at the Firerock community in Fountain Hills

The $2.43M estate, sold by Mark and Julie Steinhafel, has a resort-style backyard complete with a large covered patio and a negative-edge pool.

The $2.43M estate, purchased Frank and Suzanne Welton, has arched doorways and column pillars.

Frank and Suzanne Welton paid $2.43 million for an estate in Scottsdale’s Desert Mountain community.

Eric and Kristin Kufel paid $5.4 million for a mansion in Scottsdale’s Lombardi Estates.

The $5.4M estate, purchased by Eric and Kristin Kufel, has a heated pool with waterfall features.

The $5.4M estate, sold by Mills and Loretta Brown, has vaulted ceilings and hardwood flooring.

Eric and Kristin Kufel paid $5.4 million for a mansion in Scottsdale’s Lombardi Estates.

Radha and Rahul Rishi paid $3.68 million for an estate in Scottsdale.

The $3.68M estate, sold by Fairmount Lafayette, LLC has a contemporary-style kitchen with wide-plank white oak flooring.

John and Melanie Layman paid $2.88 million for this Arcadia-area mansion in Phoenix.

John and Melanie Layman paid $2.88 million for a modern farmhouse mansion in Phoenix.

The $2.88M estate, sold by Rebuild the Block, LLC, has an open-floor plan mansion with barn-style rafters and dual kitchen islands.

BDR 2012 Holding Co., LLC paid $2.78 million for this estate in Scottsdale's DC Ranch.

The $2.78M estate, sold by Gary N. Owen, features a main level master bedroom and outdoor entertaining areas.

Andrew Dunn and Gina Kieffer paid $2.7 million for a gated estate in Paradise Valley.

The $2.7M estate, sold by Allan and Marisela Hall, has contemporary design features that include a linear fireplace.

Catherine Reagor

By Catherine Reagor| April 26th, 2020

Metro Phoenix median home price hit a record in March, but most of the sales that drove the price up to $302,500 were negotiated before COVID-19 hit.

The forecast for April is a slight dip in home prices to a median of about $300,000, according to pending sales tracked by the Arizona Regional Multiple Listing Service.

Part of the projected slip in the area’s median home price this month will be due to more lower-priced homes listed for sale after the coronavirus started shaking the economy in mid-March.

Housing expert Tom Ruff of ARMLS’s Information Market group said many of those listings are likely highly leveraged short-term rentals that owners need to sell quickly.

Those listings might give first-time buyers who have been outbid by investors a break, which would lead to more sales. But that trend hasn't shown up in the weekly indicators yet.

Tracking market by the week instead of month

Housing analysts in the novel coronavirus pandemic are comparing home sales and prices by the week instead of by the month.

Ruff said the number of homes for sale climbed during the last week of March, likely due to some panicked sellers.

Listings now are falling again with the number of homes for sale down 12% from April 2019.

“Both buyers and sellers have taken a step back,” he said.

Valley home sales are expected to drop about 30% in April.

Housing front lines

Real estate agent Christa Lawcock of Realty Executives now hosts a weekly video meeting with Phoenix real estate agents to share information to navigate the real estate market during COVID-19.

“The sky is not falling on the real estate market,” Lawcock said. “Homes priced right are still getting multiple offers, but it’s not as competitive as it was.”

She and some other agents on the call are still holding open houses, following distance guidelines.

What other real estate agents are seeing:

One agent listed a home in central Phoenix priced below $500,000 last week. She showed the house to 10 different potential buyers and had three offers within three days.
Another agent said the market “went quiet” two weeks ago but now is picking back up.
Several of the real estate agents on the video call say most of the buyers they are seeing are local, though some from out-of-state are doing virtual tours.
“Overall people feel that housing prices will fall and foreclosures are on the horizon. They are nervous,” said Debbie English of HomeSmart. “I am telling them that because of low inventory that is not going to be the case.”

Ruff is optimistic metro Phoenix’s housing market won’t take a long-term hit due to the coronavirus, but he predicts the area's home sales likely will be down in May, too.

"The biggest challenge I’ve faced in COVID-19 analysis is trying to anticipate the drop in sales volume over the next couple of months," he said.

Reach the reporter at [email protected] or 602-444-8040. Follow her on Twitter @Catherinereagor.