The Arizona luxury market has suffered significantly in the past year due to the current national recession, slowing global economy and declining real estate market. As a result, there is a tremendous downward pressure on the price of Arizona luxury homes.

Many sellers who bought their luxury home in the past 3-4 years have been forced to sell because they either can no longer afford their mortgage payment or need to raise much needed cash. In many cases, these sellers are "underwater" or owe more to their lender than the home is worth. These sellers are in a classic catch-22. They can't afford to keep their home, but they can't afford to sell it either.

These intersecting circumstances have led to an unprecedented number of luxury homes being foreclosed on. As a result of mortgage default, the bank legally re-possesses (or re-acquires) the property. In the past year, the number of luxury homes that are either in active foreclosure or have already been foreclosed on and resold has more than tripled.

Some sellers, in an effort to avoid foreclosure, have sold their home through a short sale (See Foreclosure Versus Short Sale Defined). In a short sale, the lender has agreed to accept less than the seller owes thereby allowing the home owner to sell their home and avoid foreclosure. For luxury home owners who need to sell, this means they must price their homes to compete with this abundance of bank and short sale properties in order to be priced competitively and attract buyers.

This downward pressure on pricing has led to a 20% - 30% price drop for Arizona luxury homes in the past year and a significant rise in inventory. For homes listed over $5,000,000, there is a 10 year supply. This means that at the current sales rate it would take 10 years to sell the all of the $5,000,000+ homes currently on the market.

If you are a luxury home owner currently in need of selling your home and are either facing foreclosure or interested in negotiating a short sale with your lender, this site was designed with you in mind.