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Top 10 Luxury Markets Facing Price Increases

shutterstock_215442970High prices and low inventory challenges markets across the U.S., and according to data by Redfin’s latest Luxury Market Report—home prices in this market rose 4.9 percent in Q3 2017 to an average of $1.71 million due to a sharp decline in supply.

What’s considered a luxury market? Redfin's analysis defines the luxury market as the top 5 percent most expensive homes sold in the city in each quarter—on average $1 million home price or greater. In addition, the analysis tracks home sales in more than 1,000 cities across the country.

“There is still strong buyer demand for high-end homes,” said Nela Richardson, Chief Economist at Redfin. “Despite declining inventory, luxury sales soared in the third quarter. Sales of homes priced at or above $1 million were up 11 percent from a year ago, while sales of homes priced at or above $5 million were up almost as much at 10 percent.”

Luxury homes are also moving off the market faster, the report notes, with the typical luxury home finding a buyer in 70 days—four days sooner than last year.

With high prices and a competitive market, homes for sale rates dropped. The data reports that the number of homes for sale in this market decreased 18.1 percent since last year. According to Redfin, this marks two consecutive quarters of a decline in the number of high-end homes for sale.

Which cities experienced the highest home price increase across the nation? Redfin’s findings report that Longmont, Colorado led the nation with the strongest year-over-year price growth in the luxury segment for Q3 2017. On average, the price of a luxury property increased 34.7 percent—compared to last year—to $1.55 million. Following suit were Florida cities of Fort Lauderdale with a 28.7 percent increase in prices, and St. Petersburg with prices up 19.6 percent.

 

Top 10 Luxury Markets With Highest Home Price Increase

Source: Redfin October 2017 Luxury Market Report

Source: Redfin October 2017 Luxury Market Report

About Author: Nicole Casperson

Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech's College of Media and Communications. To contact Casperson, e-mail: [email protected].
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