In Q4 of 2016, luxury home prices reached an average of $1.6 million, a 0.7 percent increase compared to the year before.
Redfin reports that, for the eighth consecutive quarter, luxury home prices have been outpaced by non-luxury properties, which experienced 6.1 percent sales growth to reach an average price of $312,000. A home is considered luxury if it is among the top 5 percent most expensive homes sold during the time period. Non-luxury homes are the remaining 95 percent of the market.
Santa Clarita, Calif., fared well in luxury sales. Prices were up to $2.03 million, a 113.8 percent rise compared to last year. Other thriving high-end markets include Los Angeles, San Francisco, Oakland, and a few places in Florida (West Palm Beach, Tampa, and St. Petersburg).
Luxury prices declined 32.2 percent in Reno, Nev., to an average of $991,000. Prices at the top of the market were also down in Washington D.C., Austin, Texas, Chicago, and San Diego.
“Cities with booming luxury markets attracted traditional high-income buyers seeking a place to live, work and grow their families,” said Redfin chief economist Nela Richardson. “Prices in cities with more transient luxury buyers, looking for investments or a place to park their wealth, had more tepid growth to close out 2016.”
Advertisement
Related Stories
Sales
Sales and Texting? Know the Rules
Texting your sales prospects en masse can be an efficient way to get your message through if you follow these best practices
Affordability
Will NAR's Landmark Commissions Settlement Lower Housing Costs?
The $418 million deal changes long-standing rules—written and unwritten—that consumers claim inflated sales commissions for home sellers, including new-home builders
Market Data + Trends
January's Mortgage Rate Dip Prompts Some Thawing of the Housing Market
A drop in mortgage rates from recent peaks nudged more homebuyers and sellers into the market, signaling the start of greater supply and demand
