A Quick Update on the Soaring Luxury Market
Here’s what you should know about the recent surge in luxury home sales.
It’s time for another one-minute luxury home sale update. The big news is that luxury home sales have surged a record 61% according to a recent study by Redfin. They’ve quadrupled their pre-pandemic growth as America’s wealthiest homebuyers reap the gains of uneven economic recovery.
Sales of luxury homes significantly outpaced the 7% growth in sales of affordable homes last fall as affluent Americans were more likely to have the means and flexibility to move during the COVID pandemic. They surged 60.7% in the year-over-year numbers during the three months preceding December 2020, the biggest jump since at least 2013. These numbers also far outpaced the 14.8% increase in sales of mid-priced homes. Redfin considers the luxury market as homes that sell for close to $1 million.
The market for vacation homes has seen a huge uptick as well, many of them being luxury properties. The demand for second homes has soared by 100% year over year in October, surpassing the 50% increase in demand for primary homes. Many of the country’s hottest neighborhoods are very popular resort destinations full of high-end homes.
If you have any questions about the luxury market or luxury real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.