Located between Scottsdale and Phoenix, Arizona, Paradise Valley is an affluent area of about 14,000 residents whose higher homes values are helped by favorable zoning. Only single-family homes are allowed as residences, with the majority of homes built on one-acre lots or larger. In addition, there are no property taxes charged to homeowners. In exchange for such hands-off governance, residents forfeit full-service city amenities, and they have to contract separately for such services as waste removal, fire protection and water service.

The town of Paradise Valley was incorporated in 1961 and encompasses an area of 16.5 miles.

"The area has many luxury homes and golf courses," says Realtor Lynn Coleman. "The area includes some notable hiking and climbing mountains including Mummy Mountain and of course the famous Camelback Mountain."

Coleman explains, "For the month of July 2002, there were 35 residential resale properties that closed escrow during the period, ranging in price from $124,000 to $4,800,000. The average listing price for all properties was $1,452,814. (up 24% from June) and the average sales price was $1,361,657 (Up 26% from June). Property in the area is currently bringing about 96% of the actual asking price. The average property sold for $250 per Sq.Ft. and was on the market for 148 days. In the last 31 days, 55 new properties have been put on the market in the Paradise Valley area with an average price of $1,459,867. The average price per square foot is $301."

Say Realtors Ginny Dean and Ken Skip Monefeldt, "There are beautiful sun-filled days, blue skies and wonderful mountain views."

Yet, say the real estate partners, "We are experiencing a strong buyer's market in luxury homes. There is a lot of product on the market, especially new construction in this wonderful community. Now is the time for buyers to invest in the Valley of the Sun. Home prices continue to rise, especially in the close-in areas. North Scottsdale is growing by leaps and bounds and Scottsdale itself is approximately 75% built out. Paradise Valley, with its acre lots and surrounded by beautiful mountain views continues to appreciate with properties being purchased, torn down and large homes built on the lots.

There is quite a supply of homes over $1 million available in Scottsdale and Paradise Valley, both new and resales. This part of the market seems to be driven by the stock market rather than the interest rates."

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Published: August 21, 2002

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