2017’s housing market was characterized by absent inventory and climbing prices—but at the higher end, those indicators softened, according to new realtor.com® research.
“Although 2017 was another strong year for the luxury housing market, it was once again outperformed by the U.S. market overall,” says Javier Vivas, director of Economic Research for realtor.com.
According to data from the portal, the luxury market’s “entry-level price,” or the top 5 percent of transactions based on sale price, grew by 5.1 percent in 2017—behind the 6.9 percent growth the market overall saw. Average days on market in luxury also lagged: 116 days, compared to the general market’s 71 days.
“Age of inventory in the top 5 percent of the market slowed significantly over last year—a tell-tale sign that the supply in the luxury sector continues to outpace demand,” Vivas says. “Much of this slowing can be attributed to a wider selection of luxury homes for buyers and increased uncertainty over the last 12 months.”
On average, million-dollar homes on the market accounted for more than 7 percent of all homes listed last year, increasing 3.9 percent, according to data from realtor.com. The median list price was $1,307,000; the median sale price was $804,000.
There are exceptions to the trend: the San Francisco Bay Area, for one, and Seattle, in addition to mainstays like Hawaii. The fastest-growing luxe markets by sale price, according to realtor.com:
- Maui, Hawaii – 32.73 percent year-over-year
- Eagle, Colo. – 31.49 percent YOY
- Kings, N.Y. (Brooklyn) – 30.33 percent YOY
- Kauai, Hawaii – 25.11 percent YOY
- Hawaii, Hawaii – 24.84 percent YOY
- New York, N.Y. – $5,284,000
- San Mateo, Calif. – $3,370,700
- Marin, Calif. (Bay Area) – $3,288,800
- San Francisco, Calif. – $3,212,200
- Eagle, Colo. – $2,890,000
For more information, please visit www.realtor.com.