How Has the Pandemic Affected the Luxury Housing Market?
A nationwide pandemic may not be the best time to spend a few million dollars, and it’s showing in homebuyer and seller activity in the luxury housing market. Homebuyer demand fell in mid-March and mid-April, and listings for homes priced at or above $1 million all but dried up, according to Redfin. Last year, the supply of luxury homes for sale increased by 38 percent, but this year, listings decreased during the same time period. Yet Redfin says that there is one hopeful note for this market segment: Many sellers of million-dollar properties have the luxury of waiting it out for better market conditions to sell. See exactly how the coronavirus is impacting the million-dollar housing market and learn which 10 cities have seen the largest dip in homes for sale.
Between mid-March and mid-April, the new supply of homes for sale over $1 million fell 29 points from the year prior, according to a new Redfin analysis of listing activity.
As of March 15, there were 66,528 homes for sale priced at or above $1 million across the 50 largest U.S. metro areas. Between March 15 and April 20, 10,338 more were listed for sale, but 10,708 were taken off the market unsold, for a total decrease in supply of 1%. During the same period a year earlier supply increased 28%.
In contrast, homes priced under $250,000 saw a 34% increase in supply between March 15 and April 20 of this year. Still, that’s down from a 59% increase during the same time in 2019. While there may be more supply here than in the high-end market, it by no means solves an ongoing affordability crisis in the U.S.