Luxury Buyers Go All In, Surging High-Price Home Sales
Since the start of the pandemic, home sales for properties priced from $600,000 to more than $1 million have surged. A new report from real estate data provider HousingCanary found home sales for single-family homes priced above $1 million between March and November were 28.8% higher compared to the same time period in 2019. The same surge is seen in homes priced from $600,000 to $1 million, which experienced a 26.3% yearly increase. And at the other end of the spectrum, homes priced less than $200,000 experienced a double-digit drop in sales.
The data underlines the increasing desire for buyers to upgrade to larger homes with more amenities. Now spending more time at home and frequently working remotely, homeowners are realizing they’re in need of more square footage, home offices and outdoor space, features that often come with a steeper price tag.
Despite their surging popularity, $1 million-plus home sales only represent a fraction of the overall market, with most contracts being recorded on homes in the $200,000 to $400,000 range, according to the report.