2021 has been a tremendous year for luxury real estate, with high appreciation percentages in the double digits. When looking at closed sales, also known as comps, you’ll commonly hear the term price per square foot. For those new to the concept, this number is calculated by taking the closed sales price of a home and dividing it by its square footage.
For example, 10951 Stardust Avenue in The Summit sold for $15,400,000 and was 6,634 square feet, resulting in a sold price per square foot of $2,321. 685 Dragon Peak Drive in MacDonald Highlands sold for $25,000,000 and was 15,000 square feet, which comes out to $1,667/sqft. These are some of the highest numbers the valley has ever seen!
Looking at the closed sales for November, you’ll see quite a range when it comes to the sold price per square foot. Some of the factors that contribute to a home’s sale price, and ultimately the sold price per square foot, are location, views, the age of the home, renovations, pool, etc. When choosing home sales to compare to your home, it is best to find homes that are similar in many of these aspects.
The number of available homes continues to shrink. For guard gated single-family homes, inventory is down 53% from two years ago. The availability of custom home lots is down substantially as well. All of this points toward a competitive year for homebuyers in 2022 and continued appreciation for sellers.
November 2019 – 498
November 2020 – 354
November 2021 – 233
If you’re looking to make a move next year, let’s talk sooner than later so we can put a solid plan in place.