SANTA CLARA, Calif.,
Sept. 19, 2018 /PRNewswire/ -- Luxury
home sales continued to break records as prices hit double-digit
gains in 20 major counties, according to the
realtor.com® 2018 Luxury Home Index released today.
Additionally, the number of sales at or above the $1 million mark rose 6 percent over last
year.
The realtor.com® Luxury Home Index analyzes the
entry-level luxury price tier, defined as the top 5 percent of all
residential sales, in 90 U.S. counties.
Demand for luxury homes remains strong throughout the
summer
The pace of sales for luxury homes remains
strong. The combined median age of inventory in the 90 luxury
markets surveyed was 121 days, down nine days or 6.9 percent
year-over-year. Additionally, two thirds of luxury markets are
seeing inventory move faster than this time last year.
In 50 of the 90 counties analyzed, the luxury tier currently has
an entry point of at least $1
million, while 70 markets continue to see yearly price
growth.
"The conditions in the luxury segment are quite different from
the market overall – it's really a tale of two markets," said
Danielle Hale, chief economist for
realtor.com®. "Although U.S. median listing prices show
signs of slowing growth, luxury prices are moving in the opposite
direction in many places. For the second consecutive month, we've
seen more markets with double-digit, entry-level luxury price
growth than in the past four years."
Sarasota stays on
top
Since March, Sarasota,
Fla. has remained the nation's fastest-growing luxury
market, with sales prices up 21 percent since last June. Half of
all luxury homes in Sarasota sold
within 165 days, 22 percent faster than the previous year.
Queens, N.Y.; Santa Clara, Calif.; Boulder, Colo.; and Collier, Fla. rounded out the top five
counties, each seeing yearly price growth between 13 and 15
percent.
Miami's luxury market starts
heating up
Recent trends in Miami's luxury segment suggest that the luxury
entry point could break the $1
million mark for the first time this fall. After declining
for 24 months in a row, Miami
luxury prices finally saw growth this January, and have now reached
the highest price gains since July
2015. Miami's luxury market
is currently growing at 2.2 percent year-over-year.
Other surrounding South Florida
counties, including Broward,
Collier, Lee, and Palm
Beach, saw similar declines in recent years, but many of
them have outpaced the rest of the country since early last year
with yearly price growth between 5 and 13 percent.
Most California luxury
markets show no sign of a slowdown
Northern California luxury markets continue
performing well, with seven counties in the top 20 fastest growing
markets, all of which saw double-digit growth in June.
San Francisco, Sonoma, and Santa
Clara -- up 10, 13, and 15 percent, respectively -- are
showing there is still room for growth. On the other hand,
San Mateo, Sacramento, San Luis
Obispo, and Santa Cruz are
holding steady.
Momentum in Nashville
There's a hot streak in
Davidson and Williamson counties, both part of the greater
Nashville area, which grew 12 and
11 percent, respectively. Both saw double-digit growth in June,
after steadily gaining momentum since 2016. Half of all luxury
homes sold in 61 days in Davidson
County, putting it among the nation's 10 fastest-moving
luxury markets.
Seattle still has room to
grow
Seattle (King County, Wash.) luxury grew by 13 percent
in June compared to the same time last year, pushing its luxury
entry point to $1.5 million. This
marks Seattle's 11th consecutive
month of growth between 12 and 14 percent. As the market's growing
tech scene funnels in a more affluent crowd, more buyers can afford
pricier homes, which may push demand - and prices - higher.
See more on the realtor.com research portal:
https://www.realtor.com/research/luxury-housing-report-august-2018/
Top 20 Fastest
growing luxury markets
|
|
Market (By
County)
|
Luxury Sales Price
(Top
5%)
|
% Change Year-over-
Year
|
Sarasota,
Fla.
|
$1,000,000
|
21.0%
|
Queens,
N.Y.
|
$1,287,000
|
15.5%
|
Santa Clara,
Calif.
|
$2,844,000
|
14.5%
|
Boulder,
Colo.
|
$1,352,000
|
13.6%
|
Collier,
Fla.
|
$1,706,000
|
13.4%
|
Sonoma,
Calif.
|
$1,467,000
|
13.3%
|
King,
Wash.
|
$1,537,000
|
13.0%
|
Santa Cruz,
Calif.
|
$1,631,000
|
13.0%
|
Snohomish,
Wash.
|
$818,000
|
12.8%
|
San Mateo,
Calif.
|
$3,505,000
|
12.2%
|
Davidson,
Tenn.
|
$796,000
|
12.0%
|
Williamson,
Tenn.
|
$1,052,000
|
11.0%
|
San Francisco,
Calif.
|
$3,313,000
|
10.3%
|
Clackamas,
Ore.
|
$898,000
|
10.2%
|
Clark,
Nev.
|
$596,000
|
10.0%
|
Sacramento,
Calif.
|
$685,000
|
10.0%
|
Maui,
Hawaii
|
$2,401,000
|
9.6%
|
Charleston,
S,C,
|
$1,150,000
|
9.5%
|
Douglas,
Colo.
|
$926,000
|
9.5%
|
San Luis Obispo,
Calif.
|
$1,223,000
|
9.5%
|
Top 20 fastest
moving luxury markets
|
|
Market (By
County)
|
Luxury Days on
Market
(Top 5%)
|
% Change
Year-over-
Year
|
Snohomish,
Wash.
|
43 days
|
4.9%
|
Hudson,
N,J,
|
51 days
|
-37.0%
|
Multnomah,
Ore.
|
52 days
|
-16.1%
|
King,
Wash.
|
53 days
|
-11.7%
|
Contra Costa,
Calif.
|
53 days
|
-13.1%
|
Alameda,
Calif.
|
59 days
|
13.5%
|
Arlington,
Va.
|
59 days
|
-11.3%
|
Santa Clara,
Calif.
|
60 days
|
1.7%
|
Davidson,
Tenn.
|
61 days
|
-17.6%
|
Arapahoe,
Colo.
|
62 days
|
-22.5%
|
Cook, Ill.
|
65 days
|
3.2%
|
Philadelphia,
Pa.
|
66 days
|
-35.3%
|
Sacramento,
Calif.
|
67 days
|
2.3%
|
Norfolk,
Mass,
|
67 days
|
-27.2%
|
Los Angeles,
Calif.
|
68 days
|
-6.9%
|
Morris,
N,J,
|
69 days
|
-17.0%
|
Union,
N,J,
|
69 days
|
2.2%
|
Essex,
Mass.
|
70 days
|
-35.8%
|
Boulder,
Colo.
|
72 days
|
-19.1%
|
Clackamas,
Ore.
|
72 days
|
-7.7%
|
Methodology
The realtor.com® Luxury Home
Index analyzes 90 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 in June 2018. The following markets were excluded
from rankings this month as we review their data: Washoe, Nev.; Delaware, Penn.; Fairfield, Conn; and Dallas, Texas; Westchester, N.Y. The following New York markets were adjusted for lag this
month: New York, Queens; and Kings. Age of inventory figures are median
days on market for the top 5 percent of inventory based on asking
prices in August 2018.
*As measured by the cost to purchase a home in the top 5 percent
in one of the 90 luxury markets studied.
About realtor.com®
Realtor.com®, The Home of Home Search℠, offers an extensive
inventory of for-sale and rental listings, and access to
information, tools and professional expertise that help people move
confidently through every step of their home journey. It pioneered
the world of digital real estate 20 years ago, and today is the
trusted resource for home buyers, sellers and dreamers by making
all things home simple, efficient and enjoyable. 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®.
Realtor.com®
Lexie Holbert
lexie.puckett@move.com
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SOURCE realtor.com