Key Highlights
- Sales of high-end homes nationwide up +26% as of April 30, 2021
- Affordable sales up +17.8% y/y and mid-priced sales up +14.8% y/y
Top-Tier Sales Nearly Doubled Those of Mid-Priced Sales
High-end home sales jumped +26% y/y in the three-month period ending April 30 2021, according to new research by RedfinEstimates.
Due to the wealthiest Americans who have benefitted from the pandemic’s shift to remote work and the pandemic’s Herculean stock market plus their growing savings accounts, “…the economic recovery from the pandemic has disproportionately benefitted Americans with bigger bank accounts,” said Daryl Fairweather, Redfin’sChief Economist.
Check Out This 3 Month Market Summary Ending April 30
High-End Mid-Level Affordable
Homes Sold y/y 26% 14.8% 17.8%
Med. Price Change 14.3% 12.4% 10.2%
Med. Sale Price $440K $280K $189,500
Med. DOM 26 20 24
New Listings 19.3% 9.1% 13.9%
Metros Where Top-Tier Sales Jumped Most
The “usual suspects” metros led exploding high-end home sales
Take a look:
- San Francisco – +82.4%
- Oakland CA – +71.8%
- Miami – +70.4%
- San Jose – +66%
- Las Vegas – 64.4%
According to Fairweather, “Growth in high-end home sales is currently skewed toward some of the most expensive markets in the country – like the Bay Area and parts of Florida – which is also fueling an uptick in high-end home prices. The high-end sales growth in Florida is being fueled by an influx of affluent out-of-staters, while the gain in the Bay Area is more of a recovery from (the huge numbers) of Americans (who) left big cities. Folks may be starting to feel more comfortable putting down roots in major hubs now that they’re gaining clarity on post-pandemic life.”
Top-Tier Price Growth Surges
Referring to the chart up-top indicating median sale price changes, we see that top-tier home prices jumped +14.3% nationwide while prices for mid-level homes jumped a record +12.4% and affordable home prices increased +10.2% during the three months ending in April 30.
Redfin’s Fairweather said, “As the economic recovery starts to touch more middle-class Americans, we expect to see price growth accelerate for affordable and mid-priced homes.
Top-tier prices increased in all 50 of the most populous US metros. Here are the metros seeing the biggest top-tier jumps:
- Austin – +24.1%
- San Diego – +18%
- Miami – +17.7%
- West Palm Beach – +17.6%
- Phoenix – +17.2%
Redfin agent Vincent Shook in Phoenix said, “In the high-end market, we’re not only seeing multiple offers – we’re seeing buyers waiving appraisal and inspection contingencies…”
Homes At All Price Points Flying Off Shelves
The typical top-tier home spent 26 days on the market in the three month time period ending April 30…23 fewer DOM than last year at this time.
Affordable homes spent 24 DOM, 12 days less than a year ago, and mid-level homes spent 20 DOM, 18 days fewer than a year ago.
Top-Tier Listings Increasing
High-end listings increased +19.3% y/y.
Affordable and mid-level listings increased +13.9% and +9.1%, respectively.
Thanks to Redfin.
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