Real Estate Market update for Scottsdale and North East Valley. What to know:

JTodd Simpson
Jan 30
3 min read

#Scottsdale’s Luxury Real Estate Market is Booming—Here’s What You Need to Know

The luxury real estate market in Scottsdale and the surrounding areas is off to a powerful start in 2025, and the numbers tell an exciting story. If you're considering buying or selling a high-end home, now is the time to pay attention. The latest market data shows a significant shift in favor of luxury properties, making this a standout moment for high-net-worth buyers and sellers alike.

A stunning evening view of Paradise Valley, Arizona, showcasing its luxurious poolside oasis with the majestic mountains in the background, highlighting why it's a top destination for wealthy home buyers.

Luxury Sales Surge While the Rest Holds Steady

Between January 1 and January 24, 2025, overall home sales in Scottsdale and Greater Phoenix saw a modest 5.6% increase over the same period last year. However, the real story is in the high-end market:

Homes priced above $1 million saw a 57.7% increase in closed sales compared to last year.
Ultra-luxury homes above $5 million saw a 157% increase in sales.
Meanwhile, sales of homes under $1 million grew by just 1.2%.

This dramatic increase in high-end transactions means luxury homes now make up nearly 12% of total closings, up from just 8% a year ago. With more affluent buyers entering the market, it's clear that Scottsdale remains a premier destination for luxury living.

Why Are Luxury Homes Selling So Fast?

Several factors are driving this surge:

Strong Demand from High-End Buyers – Scottsdale’s reputation as a luxury hub continues to attract wealthy buyers looking for upscale homes with top-tier amenities, from golf course estates to modern desert retreats.
More Inventory to Choose From – Unlike the under $1 million market, which is facing a sharp 32% increase in active listings, the $1M+ inventory is rising at a more balanced 18%. This means luxury buyers have more options without the overwhelming supply glut seen in other price ranges.
Scottsdale’s Unmatched Lifestyle – With world-class golf courses, fine dining, and breathtaking desert landscapes, Scottsdale remains a prime destination for those seeking luxury living.

Price Trends and What They Mean for Sellers

While the surge in luxury sales is undeniable, pricing trends paint a more complex picture. Activity is up by 11.38% year-over-year, but relative appreciation has softened. This is due to a slight oversupply in some luxury segments, meaning sellers need to be strategic in pricing and positioning their homes.

Historically, a listing success rate of 67% is considered favorable, and while today’s market remains strong, it isn't quite as hot as the post-pandemic boom of 2020-2022. Sellers who price competitively and market effectively will have the best success in this environment.

Russ Lyon Sotheby’s: The Leader in Luxury

If you're selling a luxury home, it's essential to work with the right brokerage. Russ Lyon Sotheby’s sells nearly 4 to 1 over any other brokerage when it comes to luxury real estate. This dominance in the high-end market ensures that sellers receive unmatched exposure and marketing power to attract qualified buyers.

Final Takeaways

Luxury home sales are booming, with a nearly 58% increase in closings for $1M+ homes.
More inventory means more opportunities for buyers, but sellers must price their homes wisely to stay competitive.
Russ Lyon Sotheby’s continues to be the premier choice for luxury real estate in Scottsdale.

If you’re considering buying or selling a high-end home, now is the time to take action. The Scottsdale luxury market is strong, but like all real estate cycles, this momentum won’t last forever. Position yourself for success by working with a market leader who knows how to navigate these trends.