The luxury home market is no stranger to the effects of the recent real estate decline. However, with more and more reports coming out boasting a recovering housing market, it seems that luxury real estate is also bouncing back! In addition to providing remarkable figures to high-end real estate publication, Unique Homes, recently released a report taking a deeper look at the luxury home market for this year and we at Homes.com are excited about the findings!
Most of us dream about owning an extravagant luxury home one day. For some, that dream was put on hold when the real estate market bottomed out in recent years. In 2012 however, many experts started to see signs that indicate a recovering housing market. Now, Homes.com is pleased to share with you On the Rise, an exclusive report regarding the rise in luxury home sales.
In this report, Unique Homes reveals many positive indicators as well as predictions for 2013. Homes.com actually provided some of these indicators by examining ten luxury home markets and sales from the first half of 2012. We discovered that almost all upscale markets showed an average monthly sales increase ranging from 5 to 54 percent. Aspen, CO saw the highest average monthly increase, 54 percent, $1 million plus properties sold. Greenwich, CT, San Francisco, CA, and New York, NY follow closely behind.
We also examined the monthly percentage of sales for these markets and found that, naturally, the share of luxury homes sold was larger in markets with a generally higher median list price. Nearly 70 percent of the sales from Beverly Hills, CA and nearly half of the sales from New York, NY were on properties priced $1 million or above. Both of these areas have median listing prices above $1 million; therefore, median pricing can have a significant impact on the sales of luxury homes in certain areas.
What’s in store for luxury home sales in 2013? In most high-end markets, we expect to see sales trends continue to improve and closely follow the overall real estate market trend in each city, which is good news for both sellers and buyers in the luxury housing market. We determined that three prominent factors are contributing to the increases in luxury home sales: an increase in international and all-cash buyers, the lowering of jumbo loan requirements, and pent up demand. Our experts at Unique Homes agree – “Pent-up demand will continue to be a driver for sales in 2013.”
*Analysis is performed on sales data from Homes.com during January through July of 2012.
**Luxury Home data is calculated from properties priced $1 million plus.