Phoenix Luxury Home Values Are Now Growing Faster Than Typical Homes — What Sellers and Buyers Need to Know

Phoenix’s luxury real estate market is showing remarkable strength as high‑end home values outpace the broader market for the first time in years. According to a recent Zillow® analysis, luxury home values in the Phoenix metro — defined as the top 5% of most valuable homes — have risen about 7.1% year‑over‑year, exceeding growth in typical home values and placing Phoenix among the Top 10 U.S. metros with the fastest increase in luxury home prices. (AZ Big Media, 2024)

In practical terms, the typical Phoenix luxury home is now valued at just over $2 million, compared to the nationwide typical luxury home price of roughly $1.62 million. This robust growth reflects strong demand from affluent buyers who are less impacted by higher borrowing costs and often purchase properties with cash. (AZ Big Media, 2024)

Demand Outpacing Inventory

One factor driving these luxury price gains is limited inventory in the top tier. Although overall housing inventory is gradually recovering, luxury properties remain scarcer relative to pre‑pandemic levels. This scarcity helps sustain pricing power and competitive dynamics among buyers seeking premier homes in the Valley. (AZ Big Media, 2024)

Strong Luxury Presence Draws New Brokerage Expansion

The unique attractiveness of Phoenix’s luxury market has caught the attention of national brokerages. SERHANT. — a luxury real estate firm founded in New York — has officially expanded into Arizona, marking its first move beyond the East Coast. The Phoenix launch team represents more than $500 million in prior sales volume and begins with over 100 listings, signaling confidence from seasoned luxury real estate professionals in the Valley’s high‑end segment. (Inman, 2025)

Designated broker Todd Lee, who leads the new SERHANT. Arizona office, emphasized the brand’s commitment to quality, innovation and high‑tech marketing tools — all of which are essential in serving upscale clientele and positioning luxury properties for maximum impact in today’s market. (Inman, 2025)

What This Means for Buyers & Sellers

For luxury sellers, the current landscape creates compelling opportunities:

• Strategic pricing is essential. Homes that are competitively priced based on recent luxury comps are attracting more qualified offers.

• Presentation matters. High‑end properties that show exceptionally well with professional staging often drive stronger buyer interest.

• Brand presence counts. Having representation from a brokerage with a strong luxury reputation can expand buyer reach and exposure.

For affluent buyers, the momentum in Phoenix’s luxury sector suggests:

• Inventory is limited but dynamic. Savvy buyers who monitor new listings closely may find opportunities in highly desirable neighborhoods before homes hit broader exposure.

• Cash transactions remain prevalent among high‑net‑worth buyers, enabling faster and more flexible deal execution. (Inman, 2025)

Phoenix’s Continued Appeal

While some national markets have seen price softness or slower growth, Phoenix’s luxury segment continues to stand out due to strong buyer demand backed by local lifestyle appeal, migration trends, and economic fundamentals. (AZ Big Media, 2024)

Whether you’re selling a premium property or considering your next luxury purchase, understanding these market signals is crucial for success.

Source:

• Phoenix Among Top 10 for Increase in Luxury Home Values (AZ Big Media, August 23, 2024)
• Arizona Marks First Move Beyond East Coast For SERHANT. (Inman, March 17, 2025)