Though the luxury housing market nationwide has experienced a resurgence in the past year, an article written by Inman News and re-posted on the WFG Title Company blog describes a recent rise in inventory within the luxury market, which in many cases has resulted in a noticeable slowdown of price increases and a general loss of steam in the luxury real estate market as a whole. The author cites indicators such as changes in the tax code for high value properties, and a reduction in foreign investors as two possible catalysts.
The article goes on to predict a healthy and balanced but cautious luxury market in 2019, pointing out that interest rates for jumbo mortgages remain relatively low, and various additional tax benefits will be going into effect aimed at high-income earners.
Luxury Market on Record Streak
By Suzanne De Vita
The luxury market is on a record streak, with double-digit growth in 19 of the largest markets in the nation, according to the July Luxury Home Index by realtor.com®. High-end homes are moving rapidly, with age of inventory at 108 days—11 days faster than in July 2017—and $1 million-plus properties on the rise.
“The strong economy is bolstering demand for luxury homes,” says 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 [91 in total].
“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,” Hale says.
According to the Index, which analyzes 91 counties in the luxury segment, examining prices in the top 5 percent of all sales, specifically, the fastest-growing luxury markets are:
1. Sarasota County, Fla.
Price (Top 5%): $1.004 million
+21.2% YoY
2. Queens County, N.Y.
Price (Top 5%): $1.27 million
+15.8% YoY
3. Maui County, Hawaii
Price (Top 5%): $2.41 million
+14.7% YoY
4. Santa Clara County, Calif.
Price (Top 5%): $2.8 million
+14% YoY
5. Boulder County, Colo.
Price (Top 5%): $1.34 million
+13.7% YoY
For more information, please visit www.realtor.com. Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. Reprinted with permission from RISMedia. ©2018. All rights reserved.
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