Across the country, luxury home sales are surging compared to last year. The priciest 1 percent of homes are spending less time on the market, and selling for higher prices than the same period in 2013, according to data from realtor.com. Helping to boost the luxury market in recent months may be an uptick in the stock market and improving economy.
Historically a larger price tag would typically translate to more days on the market. However, data from the last year indicates that homes listed for over $30 million spent less time on the market than homes priced slightly less expensive. According to the Wall Street Journal, this may partly be due to the fact that this market segment is attracting a more engaged group of buyers. Some of these homes are also marketed quietly before hitting the open market, which may shorten the time frame also. For homes priced just under $30 million, median number of days on market was 180, while above $30 million, median number of days dropped to 139. For homes priced less than $1 million, the median number of days on market was 80. Nationally, across all price points, the median days on market is 82 -- down from 85 a year ago.
Redfin reports that by last May, sales of the most expensive home in many local markets were up 21% in 2014, even after a 35% gain the previous year. Listings that sat on the market two years ago, never engaging a buyer, are re-entering the marketplace, selling quickly for higher prices. In the Naples area, we are experiencing low inventory which is contributing to higher prices, shorter market time and a reserve of buyers waiting for the right property to become available. For those homeowners considering selling their property, market conditions are ideal.
Sources: Redfin 2014 "Luxury Report"; Realtor.com RealtorMag; Wall Street Journal (Sept. 10, 2014) "Luxury Homes: Priced to Sell to $30 Million"