Welcome to the Luxury Market Report, your guide to luxury real estate market data and trends for North America. Produced monthly by The Institute for Luxury Home Marketing, this report provides an in-depth look at the top residential markets across the United States and Canada. Within the individual markets, you will find established luxury benchmark prices and detailed survey of luxury active and sold properties designed to showcase current market status and recent trends. The national report illustrates a compilation of the top North American markets to review overall standards and trends.
– LUXURY REPORT OVERVIEW –
The Institute for Luxury Home Marketing has analyzed a number of metrics — including sales prices, sales volumes, number of sales, sales-price-to-list-price ratios, days on market and price-per-square-foot – to provide you a comprehensive North American Luxury Market report.
Additionally, we have further examined all of the individual luxury markets to provide both an overview and an in-depth analysis - including, where data is sufficient, a breakdown by luxury single-family homes and luxury attached homes.
It is our intention to include additional luxury markets on a continual bases. If your market is not featured, please contact us so we can implement the necessary qualification process. More in-depth reports on the luxury communities in your market are available as well.
Looking through this report, you will notice three distinct market statuses, buyer's market, seller's Market, and balanced market. A Buyer's Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.
By contrast, a Seller's Market gives sellers greater control over the price point. Typically this means there are few homes on the market and a generous demand, causing competition between buyers who ultimately drive sales prices higher.
A Balanced Market indicates that neither the buyers nor the sellers control the price point at which that property will sell and that there is neither a glut nor a lack of inventory. Typically, this type of market sees a stabilization of both the list and sold price, the length of time the property is on the market as well as the expectancy amongst homeowners in their respective communities – so long as their home is priced in accordance with the current market value.
REPORT GLOSSARY
REMAINING INVENTORY: The total number of homes available at the close of a month.
DAYS ON MARKET: Measures the number of days a home is available on the market before a purchase offer is accepted.
LUXURY BENCHMARK PRICE: The price point that marks the transition from traditional homes to luxury homes.
NEW LISTINGS: The number of homes that entered the market during the current month. PRICE PER SQUARE FOOT: Measures the dollar amount of the home's price for an individual
square foot.
SALES RATIO: Sales Ratio defines market speed and determines whether the market currently favors buyers or sellers. Buyer's Market = up to 14%; Balanced Market = 15 to 20%; Seller's Market = 21% plus. If >100%, sales from previous month exceeds current inventory.
SP/LP RATIO: The Sales Price/List Price Ratio compares the value of the sold price to the value of the list price.
“Perhaps the significant sales volume increase can merely be attributed to some or all of these influences: a luxury market that recognized the value of on-going price stability, an increase in the volume of lower-valued luxury homes for sale and/or a decrease in the number of overpriced properties? Only time will tell if this is a trend or an anomaly.”
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NORTH AMERICAN MARCH LUXURY REVIEW 2 0 1 8 |
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Spring is in full bloom and so is the North American luxury housing market - unexpectedly there was a significantly higher number of homes sold in March than anticipated. Traditionally an increase in sales is expected, as the number of listings also increases when the market heads towards its busiest time, but predications for 2018 had indicated, at best, a levelling of the market. March's luxury single-family market saw a 17% increase in new listings and a 55% increase in sales over February 2018. The attached luxury market saw a 13% increase in new listings and a 49% increase in sales. The median single-family days on market dipped from 60 days to just 43. Numbers this low were last seen back in May and June 2017. Attached luxury days on market also decreased from 42 days to 37, though this market has generally been moving at a quicker pace for the past 12 months. Investigating further, luxury home prices continued to remain relatively stable - with listing prices only seeing a marginal rise of less than 1.5%. Median sales prices for single-family homes did drop by 3% and attached properties increased by 1% over the previous month, but both remained on par with March 2017. On an interesting note, the median ratio of sold price to list price ratio rose favorably for single- family homes by 0.4% and for attached properties by 0.3%. While the single family luxury median home price may have dropped $47,842, in general, sellers received closer to their asking prices. Perhaps the significant sales volume increase can merely be attributed to some or all of these influences: a luxury market that recognized the value of on-going price stability, an increase in the volume of lower-valued luxury homes for sale and/or a decrease in the number of overpriced properties? Only time will tell if this is a trend or an anomaly. In line with these significant increases in sales, statistics illustrated that many luxury markets transitioned from buyer's markets to balanced and seller's markets, which should be good news for sellers. In March, there were 12 balanced and 12 seller's single-family markets, compared to just 5 balanced and 6 seller's markets in February 2018. Attached homes showed a greater shift to a seller's market with 5 balanced and 20 seller's markets in March compared to 6 balanced and 13 seller's markets last month. On the local level, two Florida single-family markets had significantly positive swings last month. The Boca Raton/Delray Beach median luxury sales price rose 36% to $2,150,000 and the Naples luxury sales price rose 21% to $1,781,250. In the Boulder attached luxury market, the median sales prices rose 21% last month to $900,000. In a recent report by Realtor.com on the Top 10 Hottest and Coldest US Luxury Markets by zip code, interesting trends provided further insight into the intriguing world of luxury real estate. Zip codes within Los Angeles, New York, and the Hawaiian Islands reported changes in building regulations, simple geographic limitations, pent-up demand, over development and saturation, which created some unexpected effects and results. For more information on a particular luxury market, please refer to its corresponding individual report where trends can vary depending on population, location, seasons, and other local factors. |
– 13-MONTH MARKET TRENDS* –
FOR THE LUXURY NORTH AMERICAN MARKET
Single-Family Homes Attached Homes Single-Family List Price Attached List Price
– LUXURY MONTHLY MARKET REVIEW –
A Review of Key Market Differences Month Over Month
February 2018 | March 2018
SINGLE-FAMILY HOMES
February Median Sale Price $1,436,594
Total Sales Ratio 10.44%
Median prices represent properties priced above respective city benchmark prices.
March
February New Listings 8,719
Median Days on Market 60
March
10,243 43
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Median List Price |
$1,785,000 |
$1,792,878 |
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Total Inventory |
31,866 |
34,019 |
$1,388,752 15.17%
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Median SP/LP Ratio |
96.84% |
97.24% |
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Total Sold |
3,327 |
5,160 |
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Median Price per Sq. Ft. |
$412 |
$398 |
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Average Home Size |
3,400 |
3,646 |
1,524 1,833 $47,842 17 4.73% New Listings Total Sold Med. Sale Price Days on Market Sales Ratio
SINGLE-FAMILY HOMES MARKET SUMMARY | MARCH 2018
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Official Market Type: Balanced Market with a 15.17% Sales Ratio.1
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Homes are selling for an average of 97.24% of list price.
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The median luxury threshold2 price is $975,000 the median luxury home sale price is $1,388,752.
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Markets with the Highest Median Sales Price: Vail ($4,460,000), LA-Beach Cities ($3,737,500), Marin County ($3,662,500), and Silicon Valley ($3,300,000).
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Markets with the Highest Sales Ratio: Silicon Valley (95%), San Francisco (70%), Seattle (53%), and Sacramento (41%).
1Sales Ratio defines market speed and market type: Buyer's = up to 14%; Balanced = 15 to 20%; Seller's = 21% plus. If >100%, sales from previous month exceeds current inventory. 2The luxury threshold price is set in December of each year by The Institute for Luxury Home Marketing.
– LUXURY MONTHLY MARKET REVIEW –
A Review of Key Market Differences Month Over Month
February 2018 | March 2018
ATTACHED HOMES
February Median Sale Price $940,000
Total Sales Ratio 12.57%
Median prices represent properties priced above respective city benchmark prices.
March
February
2,844 42
March
3,200 37
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Median List Price |
$1,132,000 |
$1,149,500 |
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Total Inventory |
10,591 |
10,961 |
$950,000 18.06%
New Listings
Median Days on Market
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Median SP/LP Ratio |
98.12% |
98.44% |
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Total Sold |
1,331 |
1,980 |
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Median Price per Sq. Ft. |
$545 |
$565 |
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Average Home Size |
2,014 |
2,119 |
356 649 $10,000 5 5.49% New Listings Total Sold Med. Sale Price Days on Market Sales Ratio
ATTACHED HOMES MARKET SUMMARY | MARCH 2018
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Official Market Type: Balanced Market with an 18% Sales Ratio.1
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Attached homes are selling for an average of 98% of list price.
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The median luxury threshold2 price is $750,000, the median attached luxury sale price is $950,000.
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Markets with the Highest Median Sales Price: Vail ($3,200,000), San Francisco ($2,245,000), Greater Boston ($2,060,000), and Park City ($1,950,000).
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Markets with the Highest Sales Ratio: Silicon Valley (389%), Marin County (73%), San Francisco (62%), and LA-The Valley (60%).
1Sales Ratio defines market speed and market type: Buyer's = up to 14%; Balanced = 15 to 20%; Seller's = 21% plus. If >100%, sales from previous month exceeds current inventory. 2The luxury threshold price is set in December of each year by The Institute for Luxury Home Marketing.
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– LUXURY MONTHLY MARKET REVIEW – SINGLE-FAMILY HOMES |
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Median prices represent properties priced above respective city benchmark prices. |
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– LUXURY MONTHLY MARKET REVIEW – SINGLE-FAMILY HOMES |
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Median prices represent properties priced above respective city benchmark prices. |
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– LUXURY MONTHLY MARKET REVIEW – ATTACHED HOMES |
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Markets with dashes do not have a significant luxury market for this report. Median prices represent properties priced above respective city benchmark prices. |
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– LUXURY MONTHLY MARKET REVIEW – ATTACHED HOMES |
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Markets with dashes do not have a significant luxury market for this report. Median prices represent properties priced above respective city benchmark prices. |
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