SANTA CLARA, Calif.,
July 12, 2018 /PRNewswire/ -- Luxury
home sales and prices are surging, according to the
realtor.com® June 2018
Luxury Home Index released today. The Index reveals $1 million plus home sales are up 25 percent,
despite the fact it costs on average 4.6 percent more to enter the
high-end market this year compared to last year*.
The index analyzes the entry-level luxury price tier, defined as
the top 5 percent of all residential sales, in 91 U.S.
counties.
"Continued growth in high paying jobs and stock market inertia
have reignited many luxury markets this year," said Javier Vivas, director of economic research for
realtor.com®. "We've seen a substantial increase in buyer demand
for high-end homes -- even with prices and costs of ownership
swiftly on the rise."
Nationally, luxury home prices and demand continue to
rise
In the 91 luxury markets analyzed, the entry-level price for
luxury increased an average of 4.6 percent year-over-year. Some
markets continue to grow at a breakneck pace; 17 of the 91 luxury
markets are now seeing more than 10 percent price growth
year-over-year.
The pace of sales in the luxury segment continues to break last
year's records, too. The combined median age of inventory in the 91
luxury markets was 105 days, down 7 days or 6.5 percent
year-over-year. Additionally, two thirds of luxury markets are
seeing inventory move faster than last year.
$1 million plus is new norm for
luxury homes
In 51 of the 91 markets analyzed, the luxury home tier currently
has an entry point of at least $1
million. The number of sales at or above the $1 million mark in the 91 markets is also up 25
percent over last year. That is the biggest jump observed since
January 2014, and two and half times
the pace observed this January.
Luxury prices along the Northern
California coast accelerate
The region now has four of the top 10 fastest-growing luxury
markets in the country, indicating that the booming tech sector and
strong foreign interest are pushing demand for luxury properties to
new heights. Bay Area markets of Santa
Cruz, San Mateo,
Santa Clara, and Monterey have all been growing at an
accelerating pace, with entry-level luxury prices now up 12-14
percent year-over-year.
Demand extends for luxury homes in Denver, Seattle and Nashville areas
Denver's boom has extended
further outward, with Boulder,
Douglas and Denver counties all seeing double-digit annual
price growth in the luxury tier. The median days on market for
luxury properties in these three counties is 89 days, also down 15
percent year-over-year.
In the Pacific Northwest, the entry-level luxury price in
Seattle area's King County and the further outlying
Snohomish County is up 13 percent
year-over-year. The median days on market of luxury properties in
these two counties is now a combined 48 days, down 3 percent
year-over-year on average. Snohomish is currently the fastest-moving
luxury market in the country.
In Nashville's Williamson and Davidson counties, the median days on market
for luxury properties is now 71 days, down 12 percent
year-over-year on average.
Jersey City and Queens luxury markets buck the Northeast
stall
Most markets in New York and
New Jersey continue to see luxury
prices stall or remain stationary. The Hudson, N.J. (Jersey
City) and Queens, N.Y.
markets remain the exception, and both continue to see well above
average, double-digit price growth. These two markets offer a lower
luxury entry point compared with Manhattan and Brooklyn, where growth remains stagnant. The
median days on market of luxury properties in Hudson and Queens combined is 66 days, down 29 percent
year-over-year.
For more information, please visit:
https://www.realtor.com/research/luxury-home-prices-gain-momentum-first-half-2018/
Methodology
Realtor.com® Luxury Home Index analyzes 91
luxury counties, looking at yearly movement in the entry-level
luxury price boundary, defined as the top 5 percent of all
residential home sales in a given market in April 2018. The following markets were excluded
from rankings this month as we review their data: Washoe, Nevada; Lake, Ill.; Dallas; and St.
Louis. Age of inventory figures are median days on market
for the top 5 percent of inventory based on asking prices in
June 2018.
*As measured by the cost to purchase a home in the top 5 percent
in one of the 91 luxury markets studied.
|
Top 10 Fastest
Growing Luxury Markets
|
|
Market (By
County)
|
Luxury Sales
Price
(Top 5%)
|
% Change
Year-over-
Year
|
Sarasota County
(Sarasota, Fla.)
|
$1,000,000
|
19.7%
|
Collier, FL (Naples,
Fla.)
|
$1,674,000
|
15.9%
|
Queens County
(Queens, N.Y.)
|
$1,258,000
|
15.9%
|
King County (Seattle,
Wash.)
|
$1,511,000
|
13.7%
|
Monterey, CA
(Salinas, Calif.)
|
$1,962,000
|
13.2%
|
Santa Clara County
(San Jose, Calif.)
|
$2,774,000
|
13.1%
|
Boulder, CO (Boulder,
Colo.)
|
$1,327,000
|
12.8%
|
Santa Cruz, CA (Santa
Cruz, Calif.)
|
$1,616,000
|
12.7%
|
Snohomish County
(Everett, Wash.)
|
$801,000
|
12.7%
|
San Mateo County
(Redwood City, Calif.)
|
$3,475,000
|
12.3%
|
About realtor.com®
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offers the most comprehensive source of for-sale MLS-listed
properties, among competing national sites, and access to
information, tools and professional expertise to help people move
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trusted resource for home buyers, sellers and dreamers by making
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more information, visit realtor.com®.
Contact:
Lexie Holbert:
lexie.puckett@move.com
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SOURCE realtor.com