The luxury home market didn’t suffer the effects of the housing crash as severely as the rest of the market. It also rebounded faster. But, according to new research, there are a growing number of luxury listings and the additional inventory is changing conditions for buyers and sellers.
In fact, the number of luxury home listings rose 4 percent in 2017 over the year before. As a result, prices for luxury homes increased 5.1 percent last year, compared to the 6.9 percent increase the overall market experienced. Luxury properties also took longer to sell than they did the year before.
Javier Vivas, director of economic research with the National Association of Realtors, says the market is strong but supply is beginning to outpace buyer demand. “Although 2017 was another strong year for the luxury housing market, it was once again outperformed by the US market overall,” Vivas said. “Age of inventory in the top 5 percent of the market slowed significantly over last year – a telltale sign that the supply in the luxury sector continues to outpace demand.”
In other words, home buyers interested in buying a luxury home, as either a primary or secondary residence, may find more choices, opportunities, and balance among the housing market’s most expensive homes.