The cost of luxury
On the hunt for a luxury home? Then you might want to act fast. According to new data, luxury home prices are climbing — in some places at double-digit rates.
Where luxury costs the most
Though home price growth is starting to slow on lower-end and middle-of-the-road properties, the same can’t be said of the luxury market. According to the latest data from Redfin, luxury home prices are up in 70 of the nation’s biggest 90 counties. And in 20 of those counties, price growth hit the double-digits for September.
“The conditions in the luxury segment are quite different from the market overall – it’s really a tale of two markets,” said Danielle Hale, chief economist for realtor.com®. “Although U.S. median listing prices show signs of slowing growth, luxury prices are moving in the opposite direction in many places. For the second consecutive month, we’ve seen more markets with double-digit, entry-level luxury price growth than in the past four years.”
The biggest jump in luxury home prices occurred in Sarasota, Florida, where prices rose 21 percent since last June. Homes in the area also sold 22 percent faster than last year.
Other cities with big hikes in luxury prices were Queens, New York (15.5 percent); Santa Clara, California (14.5 percent); Boulder, Colorado (13.5 percent) Collier, Florida (13.4 percent); Sonoma, California (13.3 percent); King, Washington (13 percent); Santa Cruz, California (13 percent); and Snohomish, Washington (12.8 percent). The most expensive luxury homes are in San Mateo, California, where the median sale price tops $3.5 million.
Despite higher prices, luxury home sales don’t seem to be slowing down.
Total luxury sales were up 6 percent in September, while the average days on market for a luxury property dropped. The average luxury home sold in 121 days last month — down nearly 7 percent since last year.
Luxury homes sold the fastest in Snohomish, Washington averaging just 43 days on market. Hudson, New Jersey; Multnomah, Oregon; King, Washington; and Contra Costa, California, rounded out the top five fastest-selling cities.
Get today’s mortgage rates
Want to buy that luxury home before prices rise further? Then shop around and see what mortgage rates you qualify for today.