Entertainment Magazine: Arizona: Arizona Real Estate

Luxury Homes in Tucson and Phoenix, Arizona

The southwest US is becoming a hot place to live- especially for retirees and families fleeing the urban jungle. Tucson, Arizona is fast becoming a desert oasis for luxury homes.

The average price of a new-constructed home was $147,336 in July 1999, and increase of $1,800 from last year. The average price of a resale home is $135,841 about $2,500 more than last July.

Luxury home sales, above $500,000 increased 37 percent over the first half of 1998 with 19 homes selling $1,000,000 or more.

The north, northwest and northeast sides of the city, in the foothills, have the largest concentration of luxury homes. Another increasingly popular location is among the dozen golf communities around the valley

While this is an increasing trend, the price of homes are likely to rise soon with interest rate increases. The declining rates in the past fueled the increase in building permits.

But, new home closing continue at a record pace. July 1999 closings topped at 495, 11 ahead of 1998. The average over the past year has been about 500 units. Tucson may exceed more than 7,000 single-family permits for this year.