More people want to buy a luxury home as economy grows

by Steve Randall10 Aug 2018

The growing US economy is making homebuyers feel more confident in splashing the big bucks for a home.

The luxury segment of the housing market – the top 5% of all residential sales – has gained by double-digit percentages in 19 major markets and sales at $1 million or more are up 13% year-over-year.

Realtor.com’s 2018 Luxury Home Index is an analysis of the luxury sector across 91 counties and reveals that days on market was down 11 days in July to 108 compared to a year earlier.

The speed of sales was higher in two thirds of the luxury markets analyzed and was the fastest for July in the 6 years that the index has been tracking that metric.

In 49 of the 91 markets analyzed, the luxury tier currently has an entry point of at least $1 million and the number of sales at or above the $1 million mark in the 91 markets is up 12% compared to last year.

"The strong economy is bolstering demand for luxury homes," said Danielle Hale, chief economist for realtor.com. "They are selling fast and demand for these homes has pushed the entry level price point to more than $1 million in half of the markets studied. Although there are some pockets of weaker performance, we've seen double-digit price growth in 19 markets for the first time in four years."

 

Top 20 Fastest-Growing Luxury Markets

 

Market (By County)

Luxury Sales Price

(Top 5%)

% Change Year-over-

Year

Sarasota, Fla.

$1,004,000

21.2%

Queens, N.Y.

$1,270,000

15.8%

Maui, Hawaii

$2,413,000

14.7%

Santa Clara, Calif.

$2,807,000

14.0%

Boulder, Colo.

$1,344,000

13.7%

King, Wash.

$1,523,000

13.3%

Davidson, Tenn.

$796,000

12.9%

Santa Cruz, Calif.

$1,619,000

12.9%

San Mateo, Calif.

$3,500,000

12.8%

Snohomish, Wash.

$810,000

12.8%

Collier, Fla.

$1,682,000

12.6%

Hudson, N.J.

$1,324,000

11.5%

Williamson, Tenn.

$1,045,000

11.3%

Douglas, Colo.

$925,000

10.8%

Denver, Colo.

$1,026,000

10.6%

Clark, Nev.

$594,000

9.9%

Sonoma, Calif.

$1,417,000

9.9%

San Luis Obispo, Calif.

$1,214,000

9.8%

Sacramento, Calif.

$678,000

9.7%

Marin, Calif.

$3,251,000

9.4%


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