By Greg Remmers | InBusiness Phoenix
The luxury real estate buying boom that began in 2020 escalated in 2021 and will continue in the new year. Insatiable demand depleted inventory across the U.S. and put upward pressure on prices. Driving the real estate surge was a combination of factors that include shifting consumer values caused by the pandemic and historic wealth growth due to cryptocurrency gains and soaring stock markets. As people searched for safe places to put their wealth and re-envisioned “home” as multi-functional spaces for work, play and sanctuary, they sought out bigger and better living environments.
A 2021 report states an estimated 71% of individuals with a net worth of more than $5 million now own properties in the $1 million to $5 million range. Luxury sales surpass 2020 and an unprecedented demand has depleted inventory and put upward pressure on home prices in the top 10% of the market. The Realtor.com Top Housing Markets of 2022 report lists Metro Phoenix at No. 19 of the cities that will lead the nation in 2022 when it comes to listing price appreciation and home sales growth.
