Phoenix’s Camelback corridor and surrounding luxury neighborhoods are experiencing a surge in high-end real estate transactions, fueled by the technology sector’s expansion and an ongoing influx of California buyers. Recent sales data show that while the ultra-luxury market remains resilient, mid-tier segments are more sensitive to interest rate changes, creating distinct dynamics across price points.
Oleg Bortman’s entry into Phoenix real estate began after reading Robert Kiyosaki’s “Rich Dad, Poor Dad.” Starting as an investor in the late 1990s, he purchased properties in Las Vegas before the 2008 market crash, then moved to Phoenix and obtained his real estate license in 2009.
“I felt that most Realtors just opened houses and showed homes, but didn’t provide a lot of value,” Bortman says. “At that point, I was already an investor with several properties. I knew how to calculate ROI and cash flow.”
This investor-focused mindset shaped The Brokery, which Bortman co-founded in 2017. The firm has expanded from $35 million in annual sales to a projected $550 million in 2025, with 130 agents across five offices.
The arrival of major technology companies and data centers is reshaping Phoenix’s residential landscape. Facilities like Taiwan Semiconductor’s massive North Phoenix plant, Intel’s expansion, and numerous East Valley data centers are attracting high-earning professionals to the region.
“Phoenix has attracted so many data centers and tech positions,” Bortman says. “There’s a lot of high net worth individuals coming to this area, and what attracts people to the Camelback corridor—Paradise Valley, Scottsdale, Arcadia, Biltmore—is the convenience and lifestyle.”
For buyers relocating from California, the benefits are practical. “You’re centrally located, you can be 15 minutes to downtown, 10 minutes to the airport. Even if you have your private jet, the Scottsdale Air Park is only 20 minutes away,” Bortman notes.
Migration from higher-priced coastal markets is pushing up home values in Phoenix’s most desirable neighborhoods. “A home that was $2 million five years ago in Arcadia is now $6 million,” Bortman explains. “But in California, that same home is $12 million.”
This price differential motivates continued demand. “When people are migrating in, they’re selling their multi-million dollar homes for $8, $10, $12, $15 million. They’re coming here and pushing our prices up because they see so much value.”
Recent transactions highlight the trend. The Brokery is closing a single-family home for over $2.5 million in cash, with additional sales at $2.6 million and just under $3 million. Previously, the highest sale in Biltmore was $2.45 million. In Arcadia, prices have climbed even higher, with some homes now selling for $12 million to $15 million, compared to a previous high just above $10 million.
Recent Federal Reserve rate cuts have led to immediate changes in buyer activity and transaction volumes. “Right after Thanksgiving, we don’t know what happened, but the interest rates dropped again,” Bortman says. “All of a sudden, the market got really hot.”
The effect is as much psychological as financial. “People have been on the sidelines waiting for the last two or three years for rates to drop. Rates are now dropping, and we expect further declines. Even if it’s a quarter point, it’s more of a mental drop than a significant difference in their monthly payment.”
This renewed activity is reflected in declining inventory. “In September and October, we were probably at 25,000 to 26,000 homes in the MLS. Now we’re closer to about 23,000, so we’re down 12 to 15% in inventory,” Bortman says.
The Phoenix market now operates with clear divisions across price segments. In the ultra-luxury tier above $10 million, Bortman reports more homes going under contract and closing at a higher rate than ever before. The $3 million-plus category remains a strong seller’s market, while the $500,000 to $1.5 million range is more balanced and heavily influenced by interest rates, with buyers sometimes able to negotiate concessions.
This balance may be temporary. “We think by the end of Q1 in 2026, those concessions will be out the window, because rates will drop again, and the buyer’s market will be very competitive,” Bortman predicts.
Despite a strong overall market, the mid-tier segment still faces friction. Bortman reports that in December, 8–10% of deals fell through during inspections, often over relatively minor issues.
“We’re talking about $1,000 or $1,500 in inspection issues that they’re frustrated about,” he says. “They’re willing to pay a million dollars, but they’re walking away out of principle for $1,000 inspection items.”
This behavior reflects buyer psychology in a market where leverage can shift quickly. “When they think they’re the only ones, they start asking for more and more during inspection. If they fear somebody else is going to get the house, they have FOMO, then they’re not going to make it an issue anymore.”
After a period of limited activity, the multifamily investment market is picking up. “The multifamily market was kind of non-existent for the last two or three years because prices were high and capital was costly,” Bortman says.
Lower rates are drawing investors back. “We’re starting to see a lot of investors buying into the multifamily market because rental rates are going to start coming back up again, and rates are dropping down, so it’s starting to pencil out for good cap rates.”
Properties that previously sat on the market for six to twelve months are now selling within three to four weeks, thanks to improved financing terms and rising rental demand.
For institutional investors, Bortman points to specific redevelopment zones as promising opportunities. “Single-family homes in redevelopment areas, particularly near Paradise Valley Mall, which is undergoing complete redevelopment very close to Scottsdale,” he says.
Homes in this area, typically priced between $500,000 and $800,000 for three- to four-bedroom properties, stand to benefit from new infrastructure. “Whole Foods just came in, Life Time Fitness is coming in. You’ll probably see the highest growth in the next three to four years because of all the restaurants and redevelopment of infrastructure.”
Bortman expects continued price appreciation if mortgage rates remain in the mid-6% range, though the prevalence of seller concessions may decrease. “Even if they’re in the mid-sixes, homes will continue to go up, and more buyers will be able to get back into the market,” he says.
“If it drops under 6%, then sellers won’t have to give up any concessions, and rate buydowns will not be necessary anymore, because that half-point will make that much of a difference.”
The increasing complexity of the Phoenix market highlights the value of full-time, experienced real estate professionals. “Many Realtors do this part-time as a hobby, doing two or three transactions a year,” Bortman notes. “They’re not really well-versed on the entire economic changes in the market.”
He points out that understanding long-term infrastructure investments—such as the Cardinals’ $200 million training facility near Scottsdale Air Park or Taiwan Semiconductor’s expansion—requires dedicated market knowledge that part-time agents often lack.
As Phoenix continues to attract technology-sector investment and California buyers, the Camelback corridor’s premium markets remain well-positioned for continued strength. Supply constraints and lifestyle advantages continue to appeal to high-net-worth buyers seeking value relative to coastal markets, suggesting the region’s luxury housing surge will likely persist through the coming cycle.
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