On Monday, May 2 Fidelity Phoenix sponsored a Luxury Forum at the Gainey Golf Club. The forum provided an in depth look at Arizona's luxury market. With over 500 million dollars in luxury property sold and lent in the last 12 months the timing couldn't have been more perfect.

The forum was moderated by Bill Gray from the Arizona School of Real Estate. Our own Steve de Laveaga presented a luxury market trend report.

Panelists for the Luxury Forum included:
Walt Danley, Realty Executives
Tom Locati, Russ Lyon Sotheby’s International Realty
Sandra Wilken, Sandra Wilken Luxury Properties
Joan Levinson, John Hall & Associates
Don Matheson, ReMax Fine Properties
Appraiser- Sue S. Miller, SRA Miller Pipher, Inc.
Mark Monson, Primary Residential Mortgage
James Voorhees, PMB Branch Sales Manager,
Wells Fargo Mortgage Banking

Below are some key notes from the discussion and our panelists:


· Flyer attached---Panelists agree, Scottsdale Inventory is dropping although some argue that there is a lack of quality inventory out there.

· When asked how their business has changed in the last 3 years and what are they doing different today, Sandra Wilken, Sandra Wilken Luxury Properties said “she has built a distressed property division and 50% of the business is now bank owned”

· Great to have an appraiser on the panel, as Ms. Miller put it, “from the appriaisers perspective, we can’t forecast, we have to look at the trend. We have to look at the road already travelled, not what is expected to come when it comes to market conditions”. Because of this, it is essential that your appriaiser is knowledgeable about your market area.

· Walt Danley, from the Walt Danley Group, Realty Executives, stated if you are not doing open houses, you are missing the boat. Additionally, Walt shed some light on the Luxury rental market, by noting he is seeing rentals on the market for 48-72 hours only in the 5K-10K range. Sandra agreed.

· When asked is now the time to buy in the Luxury Market: Mark Monson noted, “lots of buyers trying to get out of the cold, weather and fair prices are great motivators”. Susan said “she is concerned about the number of foreclosures, buy now if you don’t mind being close to the bottom” and James with Wells Fargo said “If you like it, buy it”.

· The group also agreed that they were seeing more and more strategic foreclosures; first it was spec homes, then walk aways, those that refied and can’t make payments anymore or overlevearaged themselves. It is much more socially acceptable now.

· When asked where do buyers come from?: Lenders on the panel noted referrals. 50% of the panel agreed that open houses bring buyers and 75% of the panel said they get most of their leads from referrals as well, about 55-70% and the rest come from their website.

· 80% of luxury buyers are cash buyers