The luxury market remains steady and pretty much unwavering in this overarching review of the current median price for a luxury home – whether its attached or detached. The most significant trend is that the North American luxury market is decidedly in the buyer’s control, with only a few markets showing a demand that is stronger than its current inventory – which signifies a Seller’s Market.
To add some significance to this month’s overall swing into a Buyer’s Market from last month’s reported Balanced Market, this is due, in part, to a substantial drop of roughly 10% in the sales ratio of markets that have been especially high in their Seller Market ratios to date, such as Silicon Valley, Seattle, and San Francisco.
In contrast, demand for high-end luxury condominiums saw some cities experience increases in their sales ratios. Cities such as Kauai, Greater Boston, and Los Angeles saw landmark luxury condominium sales, which caused a spike in their median sales price. These landmark sales, whose rarity is hard to use as an absolute barometer, could prove an indication of growth in the luxury condo market if they continue to increase in frequency.
However, as we move into the Fall/Winter season, it is anticipated that many markets will continue to see an upswing in inventory, which may result in a downward pressure on their current list price. In communities known for their ‘snowbird’ appeal, such as Scottsdale, Kauai, and much of Florida, this is actually the start of their busy season – so we will watch with keen interest on whether any significant or unexpected trends emerge.
Read the full report here.