Luxury Home Sales are up Nationally
There are plenty of signs that the economy is officially back in the full swing of things since the 2008 crisis. Notably, Redfin.com recently revealed, “Luxury home prices [went] up 7.5 percent in the second quarter, outpacing the rest of the market for the first time since 2014.” What exactly does that mean for buyers and sellers of luxury homes, and how does the state of the upscale market impact the outlook of future activity for high-end houses?
By the Numbers
On a percentage basis, a 7.5 percent increase is a huge hike, but how does that translate to the actual price tags of luxury homes. In fact, the boost in this housing segment resulting in an average per-home price increase of $1.79 million. As is often the case in real estate, Redfin notes the substantial price increase is likely the result of the dramatic decrease in inventory of million-dollar homes.
Nationally, the number of available homes for sale in the $1 million to $4.9 million range decreased by 9.4 percent in the second quarter of this year, as compared with the same time last year. Homes valued at a minimum of $5 million experienced a decrease in availability of 9.5 percent.
Translating Percentage Changes into Successful Luxury Home Sales
Recent months have seen a lot of success in terms of luxury home sales. Homes valued at or more than $1 million have seen a sharp increase of sales, boosting the total number of sales in this category by 22.2 percent from this time last year. Homes valued at or more than $5 million were up almost 20 percent in terms of the number of sales.
Over the past five quarters, the available inventory for $1 million+ homes has steadily stayed in the double digits. Now that consumer confidence is finally starting to recoup, high-end homes are extremely in demand, drastically driving down the number of available homes.
How the Numbers Affect Your Buying Options
If you’re searching for a luxury home, there are a few things to keep in mind as you peruse the market. As is always the case, certain parts of the country may be buyers’ markets while other regions are simultaneously sellers’ markets. It’s important to understand the state of the specific economy in which you’re considering building or buying.
Here are a few other things to keep in mind:
- Choose the right neighborhood. It’s important to buy a luxury home in an upscale neighborhood to ensure it grows in value. Buying the best house in the worst neighborhood will drag down your home’s value and make it difficult to sell if you ever want to move. Instead, look for a neighborhood where the homes are all created from incredible designs and meant for luxury living.
- Pick a place that’s up-and-coming. Successful developers probably know something you don’t know. Keep your finger on the pulse of newer areas that are being developed specifically for high-end homes. If the region’s sales are successful and the press seems positive about the changes, you might be looking at the perfect investment.
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At The Ritz-Carlton Residences, Dove Mountain, you may select from eight custom home floor plans to suit every need and lifestyle, but these suggestions may only be a starting point. Collectively, your wishes combined with the expertise of the competent and creative design staff, allow your residence to emerge as your very own distinctive home, reflecting your family and its lifestyle. Luxury custom homes in The Residences range from just under 1,700 to nearly 5,500 square-feet and are available in two neighborhoods.
Finding out whether it is just right for you begins with a call: 877-451-7205.