SANTA CLARA, Calif.,
Jan. 5, 2018 /PRNewswire/ -- The
pace of sales for U.S. luxury homes weakened slightly in 2017, with
the overall housing market outperforming the still-strong upper
tier -- according to new data from realtor.com®. Despite
these signs of a national slowdown, the luxury market remained
red-hot in states like Hawaii,
Colorado and California, which saw double-digit price gains
in several local markets.
The entry-level luxury price – defined as the top 5
percent of transactions based on sales price – rose by 5.1 percent
in 2017, compared to a 6.9 percent overall housing market price
gain. Luxury properties also took 5.4 percent longer to sell in
2017 than they did in 2016, spending 116 days on market on
average.
This slow down is likely attributed to a growing number of
luxury homes in the market. In 2017, the number of million dollar
listings grew on average by 3.9 percent year-over-year and
represented more than 7 percent of all homes listed in 2017.
"Although 2017 was another strong year for the luxury housing
market, it was once again outperformed by the U.S. market overall,"
said Javier Vivas, director of
economic research for realtor.com®. "Age of inventory in
the top 5 percent of the market slowed significantly over last year
-- a tell tale sign that the supply in the luxury sector continues
to outpace demand. Much of this slowing can be attributed to a
wider selection of luxury homes for buyers and increased
uncertainty over the last 12 months."
Entry-level luxury home prices in a dozen counties, including
four counties in Hawaii, grew by
more than 10 percent in 2017. Prices also rose more than 30 percent
in Maui, Hawaii; Eagle, Colo. (near ski resorts Vail, Colo. and Beaver Creek, Colo.); and Brooklyn, N.Y., during that time.*
Luxury Stats
Metric
|
Luxury Tier (Top
5%)
|
U.S. Housing
Market
|
Median Sales
Price
|
$804,000
|
$235,000
|
Median Sales Price
Growth Year-Over-Year
|
5.14%
|
6.90%
|
Median List
Price
|
$1,307,000
|
$266,000
|
Days on
Market
|
116 days
|
71 days
|
Days on Market Change
Year-Over-Year
|
5.35%
|
-7.33%
|
Fastest Growing Luxury Markets
- Primary-Home Luxury Markets: Seattle.; Marin,
Calif. (San Francisco Bay
Area), and Brooklyn, N.Y.,
top the list with 12-30 percent growth year-over-year.
- Second-Home Luxury Markets: The Hawaiian Islands of
Maui and Kauai; ski towns of Eagle, Colo., and Summit, Utah; and the coastal luxury area of
Walton, Fla. dominate the list
with 15-33 percent growth year-over-year.
Most Expensive Markets
- Primary Luxury Markets: Manhattan and Brooklyn in New York
City, San Francisco Bay
Area markets of Marin and
San Mateo, and Los Angeles continue to top the list. Notably,
prices in all markets are also growing faster than the overall
national luxury market.
- Second-Home Luxury Markets: Eagle, Colo., Maui and Kauai top the list, with prices in all three
markets growing 5-6 times faster than the overall national luxury
market.
Fastest Growing Luxury Markets
Rank
|
County
Name
|
Luxury Sales Price
Growth Year-Over-Year
|
1
|
Maui,
Hawaii
|
32.73%
|
2
|
Eagle,
Colo.
|
31.49%
|
3
|
Kings,
N.Y.
(Brooklyn)
|
30.33%
|
4
|
Kauai,
Hawaii
|
25.11%
|
5
|
Hawaii,
Hawaii
|
24.84%
|
6
|
Honolulu,
Hawaii
|
21.79%
|
7
|
Walton,
Fla.
|
14.90%
|
8
|
King,
Wash.
|
14.13%
|
9
|
Summit,
Utah
|
12.18%
|
10
|
Marin,
Calif.
|
11.63%
|
Most Expensive Luxury Markets
Rank
|
County
Name
|
Luxury Sales
Price
|
1
|
New York,
N.Y.
|
$5,284,200
|
2
|
San Mateo,
Calif.
|
$3,370,700
|
3
|
Marin,
Calif.
|
$3,288,800
|
4
|
San Francisco,
Calif.
|
$3,212,200
|
5
|
Eagle,
Colo.
|
$2,890,600
|
6
|
Santa Clara,
Calif.
|
$2,582,300
|
7
|
Maui,
Hawaii
|
$2,485,100
|
8
|
Santa Barbara,
Calif.
|
$2,471,500
|
9
|
Kings,
N.Y.
(Brooklyn)
|
$2,468,800
|
10
|
Kauai,
Hawaii
|
$2,422,800
|
* Some portion of the price gain could be due to a mix of homes
where more than usual numbers of very expensive homes were sold
over the period.
Methodology
Realtor.com® defines a luxury
market as the top 5 percent of all transactions nationally and
within a given market based on sales prices from the
realtor.com® residential home sales database. A total of
74 counties were analyzed as luxury markets with 100 or more
$1 million transactions during the
January to August 2017 period. All
figures reflect yearly averages for that analyzed period.
About realtor.com®
Realtor.com®
is the trusted resource for home buyers, sellers and dreamers,
offering the most comprehensive source of for-sale properties,
among competing national sites, and the information, tools and
professional expertise to help people move confidently through
every step of their home journey. It pioneered the world of digital
real estate 20 years ago, and today helps make all things home
simple, efficient and enjoyable. Realtor.com® is
operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV]
subsidiary Move, Inc. under a perpetual license from the National
Association of REALTORS®. For more information, visit
realtor.com®.
Media Contact:
Realtor.com®
Lexie Puckett Holbert –
lexie.puckett@move.com
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SOURCE realtor.com