The luxury real estate market throughout the entirety of the country has perhaps never been on as solid footing as we find it today.
Looking across the nation, there is a widespread trend of a lack of inventory and increasing prices. Sales had also been on the rise at most price points, although those have slightly dipped as of late only because of the pent-up demand draining the aforementioned shortage of available homes for sale. Well, according to RealtyTrac’s August data, the luxury market is taking up a larger chunk of sales now than before.
Breaking it down into various price points and the year-over-year differences in the United States, the following has occurred:
- $200,000 and below home sales are down 9% year-over-year
- $200,000 and above home sales are up 10% in this same time period
- $500,000 and above home sales climbed up by 23% in one year
- $500,000-$1 Million home sales are up 18% annually
- $1 Million and higher home sales are up 38% over the past year
Clearly, as the sales prices rise, so have the increase in their share in the market. The improving economy, job market, and overall return of faith in real estate as a long-term investment are much to credit for this boost.
“Higher-end properties are taking up a bigger share of a smaller home-sales pie, boosting the median home price nationwide higher, even as home-price appreciation slows to single digits in many of last year’s red-hot local housing markets,” says Daren Blomquist, vice president at RealtyTrac. “On the other hand, markets where large institutional investors and other buyers have not picked clean lower-priced inventory are continuing to see strong, double-digit increases in median home prices.”
In addition, the median price for a home across the country was at $195,000. This, although lower than what we see here in our local market, is still a nationwide 15% increase in just one year. Ultimately, the real estate market is on a significant rebound and the future of our industry has never looked more promising.