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Local Luxury Builder Sees Silver Lining in Phoenix Housing Market
February 18 , 2008 by Editor(Scottsdale, AZ) - While the national subprime mortgage crisis has created a glut of single family homes for sale in the Phoenix metropolitan area, the situation is far from desperate for a segment of the real estate market relatively unaffected by the factors that are driving the current downturn in home sales. Affluent buyers are continuing to purchase existing luxury homes or building custom properties to suit their lifestyles here in the Sonoran high desert.
Christy Smith, president of Casas del Oso, a Scottsdale-based luxury home design/builder, believes the weakened US dollar has made buying luxury properties on both coasts as well as in high profile areas such as Scottsdale and Paradise Valley very attractive to wealthy buyers from Canada, Europe and Asia. “Many of the buyers we build for are purchasing their second or third home,” says Smith. “Lifestyle motivates them more than anything else, and they have the means to satisfy a desire to live in multiple locations.” Smith says their sales of custom built homes in the $3 million to $10 million price range have remained steady.
While US homes owned by foreigners may be on the rise, not all buyers come from abroad. According to a 2007 survey by The Luxury Home Council domestic wealth has never been higher with the number of millionaires in the U.S. reaching an all time high of 9.3 million households as of mid-2006. Surprisingly, many of these individuals are entrepreneurs who have made their own fortunes rather than inheriting wealth. It is these entrepreneurs, according to the survey, that drive the market for high-end homes with more than half of luxury homes being purchased by “new money.”
Smith remains cautiously optimistic that as Scottsdale continues to enjoy a worldwide reputation as a desirable place to live, luxury buyers will continue to flock here in search of another place to call home. “We see lots of buyers in the market although there is no urgency to buy,” says Smith. Everyone wants a good deal, and the affluent are no exception.”
About Casas del Oso
Casas del Oso is an award-winning custom design homebuilder with more than 25 years of experience in residential design and construction in Arizona. The Scottsdale-based company specializes in rustic luxury home styles including Mexican Hacienda, Spanish Colonial, territorial and Santa Fe style custom homes. Their signature historic/classic designs also incorporate strict preservation techniques to protect the beauty and integrity of the surrounding Sonoran desert. To view a gallery of Casas del Oso homes, visit www.casasdeloso.com or call (480) 502-8408.
