Concierge Auctions recently reported that it took high-end properties an average of 506 days on the market (DOM) to actually sell during 2018. The average sales price of that luxury residential property was $12,219,014, a +11.83% increase from 2017.
(Meanwhile, the average sale price of a single-family home was $253,600, according to Concierge Auctions, and the average DOM for that home was 80 days during 2018.)
This Concierge Auctions report stated, “Luxury properties (some 560 properties in 2018) are difficult to value and sell. There is a smaller pool of buyers, and (those buyers) are often spread out over a larger geographic range.” Of course, some parts of the country have more/fewer luxury buyers and those more/fewer buyers directly impact how long a property stays on the market.”
Two examples here…there are many luxury buyers in Palo Alto CA and homes in that city have an average of 86 DOM. In Sarasota and Manatee Counties in Florida where there are fewer luxury buyers, homes average 1,109 DOM.
The specifics concerning average DOM for luxury properties, according to Concierge Auctions, include…
- 80% of luxury properties took longer than 6 months to sell
- 47% of luxury properties took between 365 – 730 days to sell
- 30% of luxury properties took more than 730 days to sell
The more DOM, the less money for the sale. Homes that sold within 81 days on the market generated 88.09% of the listing price. Homes that languished more than 180 days on the market generated approximately 78% of the listing price.
Homes that are highly customized for specific owners usually take longer to sell and “may be worth significantly less to the buyer than the seller, according to this Concierge report. “There is a point of inflection where real estate dollars go from necessity to discretionary.”
Here is a sampling of average luxury sale prices and DOM stats in different locations around the country:
Phoenix AZ $9,177,500 720 DOM
Holmby & Bel Air CA $27,227,250 226 DOM
Pacific Palisades CA $15,398,567 395 DOM
Palo Alto CA $12,313,000 86 DOM
San Francisco CA $15,880,000 103 DOM
Aspen CO $16,596,574 400 DOM
Denver CO $6,190,883 201 DOM
Sun Valley ID $6,161,790 705 DOM
Las Vegas NV $8,050,000 1,091 DOM
Park City UT $8,011,750 449 DOM
Seattle WA $13,353,450 466 DOM