By CHUCK GREEN
Luxury home prices are at an all-time high as a record share of buyers pay cash for homes in the country’s most exclusive areas.
According to a recent report by data journalist Dana Anderson at Redfin, the prices of luxury homes rose at twice the pace of non-luxury homes at the end of last year. The typical luxury home sold for $1.17 million in Q4 2023, up 8.8% year-over-year.
Like the non-luxury market, low inventory has been pushing prices up, but new listings are increasing as more homeowners jump at the chance to snag rich buyers offering cash for their purchases.
“A lot of luxury buyers are coming in with cash, snapping up expensive homes,” Heather Mahmood-Corley,…
Well-to-do buyers are avoiding high interest rates with cash purchases, pushing luxury home prices up even more than regular houses.
The median luxury home price rose 9% YOY in Q3 2023 to $1.1 million, the highest third quarter on record, according to a new analysis from Redfin. It’s also three times faster than non-luxury prices, which were up 3.3% to $340,000 in the same period.
Luxury sales seem to have followed a similar pattern as regular homes, with sales and listings falling last year before reversing course in 2023.
Now, limited inventory has increased competition and pushed prices higher.
But while mid-tier buyers suffer high rates, high-end buyers bypass them with cash, avoiding mortgages altogether. More than two in five…
By NICOLE MURRAY
California continues to dominate the luxury homes market, but that could change as communities fight for the country’s wealthiest individuals.
In a recent Point2Homes.com study, analysts looked at which cities in the United States have the highest share of luxury homes worth at least $1 million for sale. Results were categorized by large, mid-sized, and small cities.
They found that listings above $1 million make up around 64% of the for-sale market in Los Angeles.
LA also led the ultra-luxury sector, with almost 12% of its homes priced above $5 million.
Glendale (66%), Huntington Beach (63%), and Oxnard (43%) in California were found to be the three most luxurious mid-sized markets with high percentages of the homes…
The world’s affluent population– people worth $5 million or more– grew 19.8% in 2021, and with it grew the luxury housing market, according to Coldwell Banker Global Luxury’s 2022 Global Luxury Market Insights report, titled “The Report.” There are now 3,612,730 affluent individuals worldwide, with a combined wealth of over $75 trillion. Wealth growth in the U.S. rose 24.8% in both population and wealth in 2021, up from 8.1% in 2020. At the same time, luxury single-family home sales– the top 10% of any given market– increased 14.5%, with prices jumping 20.3% from 2020. Attached luxury homes saw a 29.6% increase YOY and a 16.6% increase in prices. “Double-digit wealth and affluent population gains have happened concurrently with a once-in-a-generation…
Good Morning! Today is Thursday, January 6. It’s the anniversary of the January 6 riot, and President Biden will speak today on steps to strengthen democracy in the US. A Philadelphia fire left at least thirteen dead and two hospitalized. The CDC recommended Pfizer boosters for children aged twelve and up. And in mortgage and housing news… Check Out The Photos!: These are the most expensive homes in 2022’s hottest housing markets. Second Home Demand Stays High: December demand for vacation homes topped pre-pandemic levels by 77% as affluent Americans continue to take advantage of remote work and low-interest rates. But it’s so hard to get into the game, some people are comparing it to finding their way into an…
The supply of affordable homes in the U.S. rose 13% year-over-year (YOY) in Q3, increasing at a record pace of 1.6% YOY, according to a Redfin report. The report suggests the increase in affordable homes is due to forbearance programs ending, forcing many owners of low-cost homes to put them on the market. As forbearance programs launched in reaction to the Covid-19 pandemic come to a close, many homeowners are putting those houses on the market. More than 450,000 homeowners have exited forbearance plans in the first two weeks of October. “The end of forbearance has forced many lower-income Americans to put their homes up for sale and become renters,” said Redfin Chief Economist Daryl Fairweather. “This has caused the…
