Supply is a major player in the real estate industry. It always has been and it always will be. It directly impacts pricing and it can influence the overall market by creating an urgency that may not otherwise be present. And, since national numbers indicate supply may be growing more scarce in the luxury market, Symmetry Companies, which owns Pine Canyon in Flagstaff and Talking Rock in Prescott with Harvard Investments, always keeps a trained eye on any market movements.
According to Redfin data, as reported by CNBC and Mortgage Professional America, an inventory shortage in the luxury market is responsible for an increase in listing and sales prices. On a national level, the market experienced a 4.9 percent increase for its average sales price during the third quarter of last year. Put simply, the availability of luxury homes diminished. But demand didn’t. So, prices went up.
But, that supply issue is being addressed, particularly at Pine Canyon. As of February, the community had 25 active listings with an average listing price of $1.4 million. In addition, Pine Canyon has 36 homes under construction with another 12 in the design review process. Those numbers include a handful of spec homes that are on track to break ground this year.
Coconino Ridge, Pine Canyon’s newest neighborhood, is also progressing, offering 32 premium homesites with coveted views of both the golf course and the forest. And, with Mountain Vista, a collection of luxury condominiums within Pine Canyon, set to break ground in the coming months, inventory is no doubt on the upswing.
Despite the inventory crunch, listing and sales prices within Pine Canyon remained steady through 2017. The average sales price of a new homesite, however, jumped from $207,425 in 2016 to $299,801 in 2017.
In a seller’s market, increased pricing fueled by limited inventory is a welcome condition. Until that seller becomes a buyer again. To learn more about the homes and homesites available at Pine Canyon, review the most updated listings on our website at www.pinecanyon.net. And, if you have additional questions about residential opportunities, reach out to our Pine Canyon real estate team.