Question: How is luxury real estate market doing in Tucson, compare to the rest?
Max S. October 2007.

Answer: Luxury Real Estate is doing much better than the rest of the market. Many Foothills homes are bought with cash, which means that buyers are not affected by rising interest rates. Also, there is no foreclosures pressure in this segment of the market, investors are not unloading their rentals and fixer-uppers, relocation is not playing much of a role and as such, the supply is not overwhelming. Meanwhile, the demand for Catalina Foothills luxury homes is stable, if not growing: Baby Boomers are looking for the retirement places and winter homes, buyers from Coastal areas are cashing out and buy luxury Tucson estates for a fraction of price, Tucsonans who made money in the booming Arizona real estate are getting back in it on a bigger scale. There are not too many lots still available for the new construction in the Catalina Foothills, while whatever is build now is stuffed with gadgets, bells and whistles and contributes to the hike in prices. Anjelina. October 2007.

Update: Luxury Real Estate in Tucson got hit somewhat later and lighter, but nevertheless, it got affected by the overall market situation. Tucson Luxury Homes and Estates are down about 10-20% from the top of the market, based on my observations of price movements. One of the main reasons is fear of US recession and deterioration of stock market. Many Buyers are sitting on sidelines, forcing plentiful Sellers to compete with each other by lowering prices. The bright side for the Luxury Homes in the Catalina Foothills area is that many of them are truly unique and as such Buyers who fell in love with a certain estate have a competing fear of losing it to someone else.

Question: Is there one area or neighborhood in the Catalina Foothills that presents a better investment opportunity in terms of appreciation than the others?
Theresa B.  February 2008.

Answer: Overall, Catalina Foothills area is your best bet in Tucson Real Estate appreciation. Still, there are a lot of different neghborhoods / subdivisions within Catalina Foothills and thus your question brings up a very interesting comparison. I’d suggest to look into undervalued areas like Cimarron Foothills Estates for unique homes with great lots. Those homes are generally older, but the price difference is very significant. Afterall, comparing it to the neighboring subdivisions, $500,000-$800,000 (or "half-price") discount shall be more than enough to update the estate with granite countertops and travertine tiles. 

Meanwhile, I’d stay away from already overpriced neighborhoods like Pima Canyon, that have rows of homes for sale. Unless you fall in love with some particular home or stumble upon a distressed Seller, you shall be better off with Ventana Canyon Mountain Estates or Cobblestone Estates. Both neighborhoods are quite upscale, established and unique.

And the last, but not the least – in the current volatile Real Estate market keep your eyes open for some great deals – many new homes were designed and built specifically for sale, so some of the builders didn’t prepare for the downturn.