The starting prices for luxury residential properties (+$1M) jumped +4.6% from April 2017 to April 2018, according to realtor.com’s latest survey of luxury properties.
Not only does luxury cost +4.6% more this year than last, more people are choosing to live in luxury, according to realtor.com. Sales numbers of luxury properties jumped an astonishing 25% from 4/2017 to 4/2018. Not only is this jump the largest sales jump since 1/14, it also represents that sales of luxury properties increased at a pace two times faster than in 1/18.
High wages, particularly in tech and financial sectors, are fueling demand for 5% of the country’s most expensive properties in more than half of the country’s luxury markets. Silicon Valley, Denver and Seattle are popping. Sticker shock pricing in New York’s Brooklyn and Manhattan is pushing more-than-solid buyers into Queens NY where entry-level luxury housing increased by 15.9%. Home prices in Sarasota, FL, flooded with incoming wealthy retirees, jumped almost 20% grab realtor.com’s top ranking.
Here’s realtor.com’s top 10 list:
A word to wise agents…starting luxury prices may not fulfill luxury expectations…starting luxury prices may only buy tear-downs or properties “that need work.”
According to Javier Vivas, senior economic researcher for realtor.com, “We’ve seen a substantial increase in buyer demand for high-end homes. Today $1M won’t get you a luxury home in most major markets.”
Buck up, everyone. Tomorrow’s prices may be worse.