Key Highlights
- Median luxury price hit $825,000, a 1.2% y/y increase, according to Redfin
- Median list price on non-luxury homes increased +10.1% y/y, according to com, the fastest pace of growth since January 2018
During a three-month period ending in July, Redfin found that that the median luxury home in the US cost $825,000. This $825,000 median sale price represents a slight +1.2% y/y increase at the same time inventory within this market segment fell -0.7%.
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Please note that this slight increase of +1.2% in the median price of luxury homes in the US is far below the +6.3% y/y, or $275,250, increase in the middle tier segment of the market.
Just as this COVID-recession is different than any other recession, the COVID- recession impact on the luxury segment of the housing market is also different. According to Daryl Fairweather, Redfin chief economist, “Now more than ever, homebuyers are seeking out features long associated with luxury homes, like spacious yards, home offices, gyms and private swimming pools. And that shift in buyer preferences means the luxury housing market isn’t suffering like it has in past recessions, when homebuyers mercilessly cut their budgets.”
Naturally, luxury median home prices vary by location. Miami’s median luxury market prices increased a whopping +10.2%. Luxury sale prices increased some +9% in both New Brunswick NJ and Phoenix AZ. Simultaneously, luxury markets in Anaheim CA and Seattle saw their lux median prices drop -5.8% and- 3.6% respectively.
Nationwide, various factors point to beginning recoveries in luxury sales. Currently, the number of lux homes for sale is down just -1% compared to the -5% in the three-month period ending May 31. Newly listed homes increased +4.2% after plummeting a record -16.2% in Q2 and the number of lux homes sold was down only -6.2% after sliding -16.4% in Q2.
In San Francisco, the number of luxury homes on the market increased an eye-popping +39.3% in the three-months ending July 31. The number of lux homes on the market in Columbus OH saw the largest decrease of -21.8%.
Thanks to Redfin.
Also read: Best Times to List Vacation Homes To Generate Best Sales Prices, Personnel Moves, like Data, Can Be Predictive Too, Become a Luxury Real Estate Expert, Not Just a Luxury Real Estate Agent
