Selling luxurious and high end homes across Tucson, a city in Pima County, Arizona, is hard as the residential real estate market is still down, but selling a luxury land in prime locations can be tougher. A real estate broker from Long Realty, Rick Sack said luxury land sales and prices across the entire country dropped to about 40 to 50 percent from the real estate market’s peak.
The definition of a luxury land in most areas changed dramatically in just a few years, Sack said.
A luxury land in prime location such as Catalina Foothills that is in the recent residential market has an asking price of about $300,000 from somewhere between $600,000 and above a few years back.
Sales have slowed and price points have dropped. The sold luxury land is often saved by real estate investors, waiting for the right time and for the market to improve, which may possible result to a serious declines in luxury- home building sector.
While prices for residential lots may have dropped considerably, construction costs and supplies did not, according to a building company, Sundown Builders Inc.
Most home builders are said to focus more on remodeling and redeveloping instead of building new homes.
Lots is prime location are now selling for a fraction of its original selling price. High-end developments like Stone Canyon and Oro Valley is still struggling with foreclosures.
In the recent residential market, even if buyers are interested in purchasing a vacant luxury land, it’s tough to attain financing for new home construction.