With high-paying job growth and upward stock market trends, the luxury home market has seen significant changes in the first half of 2018, according to realtor.com. Despite luxury home prices rising 4.6 percent for $1 million plus homes, sales have still gone up 25 percent. Buyers are trusting the market trends and are willing to pay more for the home of their dreams.
Of the 91 luxury markets analyzed, 17 have a year-over-year price growth of more than 10 percent. Home prices in 51 of the 91 markets have reached or surpassed a price entry point of $1 million. This rapid growth can be attributed to growing demand from luxury home buyers.
“We’ve seen a substantial increase in buyer demand for high-end homes — even with prices and costs of ownership swiftly on the rise,” said Javier Vivas, director of economic research for realtor.com.
Not only are price and demand rising, the speed at which these properties sell has increased significantly. The market inventory is moving 6.5 percent faster than last year, with the median age on market as low as 105 days, seven days less than 2017.
Surges in luxury home market prices can be a good sign for the real estate market as a whole, with high-end home buyers displaying confidence in economic trends. If the momentum gained in the first half of 2018 is to continue, non-luxury markets may see trends of a similar scale.