SANTA CLARA, Calif.,
March 18, 2020 /PRNewswire/ -- The
U.S. luxury housing market capped off the year with its greatest
show of strength in 2019 as million-dollar sales jumped 11.4
percent year-over-year nationwide and sale prices increased 2.1
percent, according to the realtor.com® Q4 2019 Luxury
report released today.
Based on the report, the final three months of 2019 was the only
period to reach double-digit sales growth for luxury housing after
three quarters of lackluster gains, but recent economic uncertainty
could cripple luxury growth in the beginning of 2020.
"A low interest rate environment combined with a flourishing
economy and record setting stock markets pushed luxury sales into
the double digits for the first time as 2019 came to an end,"
according to realtor.com®'s Chief Economist Danielle Hale. "Buyers jumped at the opportunity
to lock in a low rate, while a build-up of luxury inventory gave
buyers plenty of options to choose from compared to entry- and
mid-level buyers. However, like the U.S. economy, luxury housing
isn't immune to the impacts both short and long-term of COVID-19.
Many of the gains made in the luxury market in the fourth quarter
could be erased as buyers are asked to stay home and sellers hunker
down. It's pretty clear that COVID-19 is going to have far reaching
consequences both in the U.S. and globally, the question that
remains is just how much of an impact it will have."
Compared to the fourth quarter of 2018, which had the highest
mortgage rates since 2011, mortgage rates dropped 108 basis points
on average during the last three months of 2019. Driven by the
sharp drop in rates, the 11 percent jump in sales was a welcome
sight for many sellers, compared to the third quarter of 2019 where
sales grew just 1 percent. The volume of luxury sales increased in
59 of the 78 luxury markets tracked by realtor.com® in
the fourth quarter of 2019, led by Morris, N.J.; Mecklenburg, N.C.; and San Louis Obispo,
Calif., which all saw growth of at least 72 percent.
The entry-level luxury price in the 78 luxury markets reached
$1.27 million in the fourth quarter
of 2019, up a moderate 2.1 percent year-over-year. Despite
the year-over-year increase, prices grew 2.9 percent slower than
the 5 percent pace of growth during the fourth quarter of 2018.
At the local level, 44 of the 78 luxury markets saw sales price
growth in the fourth quarter of 2019, led by Santa Barbara, Calif.; Monterey, Calif.; Eagle, Colo.; Pinellas, Fla.; and San Louis Obispo, Calif.,
all seeing growth of 11 to 25 percent year-over-year. Six markets
experienced double-digit price growth in the final three months of
2019, compared to 15 markets a year ago.
California luxury markets were
especially strong during the fourth quarter of 2019 as
million-dollar sales grew by 10 percent year-over-year. Consistent
with the national trend, this marked the first time in 2019 that
million-dollar sales grew after three quarters of declines. Of the
18 markets tracked in California,
13 markets saw annual growth in million-dollar sales. Entry-level
luxury prices in California also
saw a healthy 2.7 percent rate of growth over last year, pushing
California's luxury entry-point to
$1.97 million. Santa Barbara was the fastest growing luxury
market in the fourth quarter, with prices reaching $2.88 million, up 25 percent year-over-year, and
sales up 29 percent year-over-year.
Top 20 Fastest
Growing Luxury Markets
|
(Based on sale price
growth YoY)
|
County
|
Luxury (top 5%)
Sale Price
|
Luxury Sale Price
YoY
|
Million Dollar
Sales Count YoY
|
Santa Barbara,
Calif.
|
2,879,000
|
24.9%
|
29.0%
|
Monterey,
Calif.
|
2,359,100
|
24.4%
|
51.7%
|
Eagle,
Colo.
|
2,801,000
|
22.7%
|
43.2%
|
Pinellas,
Fla.
|
762,500
|
12.0%
|
-1.6%
|
San Luis Obispo,
Calif.
|
1,378,100
|
10.5%
|
72.1%
|
Travis,
Texas
|
978,700
|
9.6%
|
44.1%
|
Cape May,
N.J.
|
1,639,400
|
9.2%
|
-3.9%
|
Monroe,
Fla.
|
1,883,500
|
8.4%
|
37.5%
|
Alexandria City,
Va.
|
1,251,500
|
7.9%
|
9.3%
|
Plymouth,
Mass.
|
923,400
|
7.2%
|
53.8%
|
Summit,
Colo.
|
1,791,000
|
6.9%
|
24.0%
|
Mecklenburg,
N.C.
|
785,800
|
6.6%
|
83.3%
|
Placer,
Calif.
|
986,800
|
6.1%
|
17.4%
|
Snohomish,
Wash.
|
896,000
|
6.1%
|
14.6%
|
Fulton,
Ga.
|
1,018,000
|
5.9%
|
44.7%
|
Tarrant,
Texas
|
570,400
|
5.9%
|
-17.5%
|
Arlington,
Va.
|
1,573,300
|
5.5%
|
0.8%
|
Douglas,
Colo.
|
995,100
|
5.2%
|
30.4%
|
Williamson,
Tenn.
|
1,159,800
|
5.1%
|
10.4%
|
Denver,
Colo.
|
1,109,900
|
4.8%
|
32.0%
|
Top 20 Fastest
Growing Luxury Markets
|
(Based on growth of
million dollar sales YoY)
|
County
|
Luxury (top 5%)
Sale Price
|
Luxury Sale Price
YoY
|
Million Dollar
Sales Count YoY
|
Morris,
N.J.
|
1,073,000
|
-0.5%
|
92.9%
|
Mecklenburg,
N.C.
|
785,800
|
6.6%
|
83.3%
|
San Luis Obispo,
Calif.
|
1,378,100
|
10.5%
|
72.1%
|
Plymouth,
Mass.
|
923,400
|
7.2%
|
53.8%
|
Monterey,
Calif.
|
2,359,100
|
24.4%
|
51.7%
|
Wake, N.C.
|
688,400
|
4.1%
|
49.1%
|
Riverside,
Calif.
|
803,500
|
3.3%
|
45.3%
|
Fulton,
Ga.
|
1,018,000
|
5.9%
|
44.7%
|
Travis,
Texas
|
978,700
|
9.6%
|
44.1%
|
Eagle,
Colo.
|
2,801,000
|
22.7%
|
43.2%
|
Sarasota,
Fla.
|
852,500
|
-11.0%
|
41.5%
|
Monroe,
Fla.
|
1,883,500
|
8.4%
|
37.5%
|
Montgomery,
Md.
|
1,301,000
|
2.6%
|
36.5%
|
Orange,
Fla.
|
691,000
|
3.7%
|
35.6%
|
Somerset,
N.J.
|
995,800
|
-5.1%
|
35.5%
|
Jefferson,
Colo.
|
868,800
|
2.3%
|
34.4%
|
Sacramento,
Calif.
|
728,600
|
4.8%
|
33.3%
|
Denver,
Colo.
|
1,109,900
|
4.8%
|
32.0%
|
Maricopa,
Ariz.
|
741,300
|
3.0%
|
32.0%
|
Chester,
Pa.
|
782,000
|
4.2%
|
30.6%
|
Top 20 Most
Expensive Luxury Markets
|
(Based on sale
price)
|
County
|
Luxury (top 5%)
Sale Price
|
Luxury Sale Price
YoY
|
Million Dollar
Sales Count YoY
|
San Mateo,
Calif.
|
3,511,300
|
-4.7%
|
8.4%
|
San Francisco,
Calif.
|
3,424,900
|
0.4%
|
-0.3%
|
Marin,
Calif.
|
3,112,300
|
-6.3%
|
21.9%
|
Santa Clara,
Calif.
|
2,898,700
|
0.3%
|
-2.5%
|
Santa Barbara,
Calif.
|
2,879,000
|
24.9%
|
29.0%
|
Eagle,
Colo.
|
2,801,000
|
22.7%
|
43.2%
|
Monterey,
Calif.
|
2,359,100
|
24.4%
|
51.7%
|
Los Angeles,
Calif.
|
2,111,900
|
-1.7%
|
24.7%
|
Orange,
Calif.
|
1,963,000
|
-0.3%
|
10.1%
|
Monroe,
Fla.
|
1,883,500
|
8.4%
|
37.5%
|
Summit,
Colo.
|
1,791,000
|
6.9%
|
24.0%
|
Westchester,
N.Y.
|
1,681,000
|
-3.7%
|
8.1%
|
Alameda,
Calif.
|
1,678,900
|
-0.2%
|
-16.5%
|
Contra Costa,
Calif.
|
1,674,200
|
4.3%
|
19.4%
|
Santa Cruz,
Calif.
|
1,646,700
|
-5.3%
|
-1.4%
|
Cape May,
N.J.
|
1,639,400
|
9.2%
|
-3.9%
|
King,
Wash.
|
1,582,900
|
-0.1%
|
16.9%
|
Arlington,
Va.
|
1,573,300
|
5.5%
|
0.8%
|
Collier,
Fla.
|
1,544,000
|
-10.0%
|
14.5%
|
San Diego,
Calif.
|
1,536,700
|
-0.2%
|
21.1%
|
Methodology
The realtor.com® Luxury Home
Index analyzes 95 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 for the past 12
months. Price figures are averages for the period. The following
(17) markets were excluded from rankings this quarter as we review
their data: Barnstable, Mass.;
Clark, Nev.; Dallas; Delaware,
Pa.; Fairfield, Conn.;
Honolulu; Hawaii, Hudson,
N.J.; Kings, N.Y.;
Lee, Fla.; Maui; Hawaii,
Montgomery, Pa.; New York, N.Y.; St.
Louis, Mo.; Suffolk, Mass.;
Suffolk, N.Y.; Walton, Fla.; Washoe, Nev. Home sales metrics are based on
sales data from October 1, 2019
through December 31, 2019.
About realtor.com®
Realtor.com®
makes buying, selling and living in homes easier and more rewarding
for everyone. Realtor.com® pioneered the world of
digital real estate 20 years ago, and today through its website and
mobile apps is a trusted source for the information, tools and
professional expertise that help people move confidently through
every step of their home journey. Using proprietary data science
and machine learning
technology, realtor.com® pairs buyers and
sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For
professionals, realtor.com® is a trusted
provider of consumer connections and branding solutions that help
them succeed in today's on-demand world. Realtor.com® is
operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV]
subsidiary Move, Inc. under a perpetual license from the National
Association of REALTORS®. For more information,
visit realtor.com®.
Media Contacts:
- Cody
Horvat cody.horvat@move.com
View original
content:http://www.prnewswire.com/news-releases/luxury-housing-showed-strength-in-the-fourth-quarter-but-that-will-likely-change-given-recent-economic-uncertainty-301025763.html
SOURCE realtor.com