Real Estate News

Reports show recent luxury market trends

Published: 12 May 2017

Although it may seem exclusive, the luxury housing market can reflect some of the same conditions that other sectors do. There's mixed news for preimum homes in recent months, according to a pair of sources, which could put luxury buyers in a peculiar spot while they search for their ideal high-end home.

Forbes recently cited the Global Luxury Real Estate Market Report from Christie's International Real Estate. According to this description, sales prices for more expensive luxury homes rose as the amount of sales themselves descended.

Drawing figures from more than 100 markets around the world, the report said that most maintained the level of sales, though 24 showed clear plunges. The definition of a luxury home here meant those priced at $1 million or higher.

An April 27 post from Redfin said that 2017's first quarter showed a 4.2 percent increase in average sales prices for luxury homes with this figure for the top 5 percent  at $1.65 million. Washington, D.C. Redfin agent, Delray Valle, said that this wasn't uncommon.

"Luxury homes are selling at a normal pace; the average high-end home is on the market about five to six months before finding a buyer," he said. "It's not a super heated market, but there is steady demand for updated, waterfront properties."

The source listed both the cities where luxury property sales prices grew and those where they declined. The top of the former list was Washington D.C., where the average sales price was more than $2.7 million and was 32.6 percent higher than it had been in 2016.

On the other end of the spectrum was Delray Beach, Florida. Though the average price here was just over $2.4 million, not much lower than the price for D.C., this represented a 26.4 percent drop during the same time period.