Luxury Home Prices Surge Year-to-Date

Luxury home prices continue to surge for the first half of the year according to realtor.com’s latest report. Most notably, Naples has been named one of the top 20 fastest growing luxury real estate markets in the country. In all, realtor.com analyzed 91 luxury markets throughout the United States. Naples in particular, saw a 15.9 percent increase year-over-year in luxury home prices.

Nationwide Luxury Home Prices: 

• Luxury home prices continue to see strong growth this year according to the latest data from the realtor.com Luxury Home Index.
• The entry-level price point for luxury homes increased on average 4.6% year-over-year (Based on the top five percent of all sales).
• The top five markets are Sarasota, FL; Naples, FL; Queens, NY; King County, WA; and Monterey, CA.
• The top five fastest growing markets are seeing a 13 percent to 20 percent price growth YOY.
• Southwest Florida, Northern California, Denver, Seattle and Nashville continue to see double-digit growth in entry level luxury prices.
• Million-dollar sales in the markets analyzed are up 25% over last year.
• Days on Market for Luxury properties decreased 7 percent year-over-year on average.

Nationally, luxury home prices show strong price increases

Growth in high paying jobs and the volatility of the stock market has led luxury home buyers back into the real estate market. Despite the increase in home ownership costs, demand for high-end homes continues to rise.  The entry level price point for luxury homes increased 4.6 percent year-over-year on average. And, of the 91 luxury real estate markets analyzed, 17 of them showed prices grow a minimum of 10 percent compared to last year.

Additionally, just over half of the luxury markets analyzed now have an entry point of at least $1 million. Also, the average days on market for the luxury market were 105 days.  This represents a 7 percent decrease.  And, approximately 66 percent of the luxury markets  are seeing inventory move faster.  Overall, homes sold above $1 million increased 25 percent.

Naples continues to attract luxury buyers from northern states

Luxury home prices in multiple of Florida markets continue to grow. Florida does not have a state income tax and northern buyers continue to chose to move to the state for tax savings.  This month, the state had two of the fastest growing luxury counties, reinforcing the demand for luxury properties is strong. In particular, Collier County and Sarasota County are growing quickly. Entry level home prices are 15-20 percent higher year-over-year. The median days on market of luxury properties in these two counties have decreased 22 percent over last year.

Top 20 Fastest Growing Luxury Markets with Percentage Change Year-Over-Year

1. 1. Sarasota, Florida (19.7 percent)
   2. Naples, FL (15.9 percent)
   3. Queens, NY (15.9 percent)
   4. King County, WA (13.7 percent)
   5. Monterey, CA (13.2 percent)
   6. Santa Clara, CA (13.1 percent)
   7. Boulder, CO (12.8 percent)
   8. Santa Cruz, CA (12.7 percent)
   9. Snohomish, WA (12.7 percent)
   10. San Mateo, CA (12.3 percent)
   11. Jersey City, NJ (12.2 percent)
   12. Lexington, TN (11.9 percent)
   13. Castle Rock, CO (11.5 percent)
   14. Franklin, TN (10.7 percent)
   15. Denver, CO (10.5 percent)
   16. Sacramento, CA (10.1 percent)
   17. Las Vegas, NV (9.9 percent)
   18. Riverside, CA (9.8 percent)
   19. Golden, CO (9.5 percent)
   20. Maui, HI (9.0 percent)

July 18, 2018 Posted by Matt