E - PAPER
CURRENT MONTH
LAST MONTH
U.S. Luxury-Home Sales Far Outpace Lower Price Brackets
Luxury-home sales in the U.S. spiked 41.6% year over year in the first quarter of 2021, with 49 of the most-populous cities registering an increase in transactions, according to a report on 21st
BY
Realty Plus
Published - Saturday, 24 Apr, 2021
BY
Realty Plus
Published - Saturday, 24 Apr, 2021
Luxury-home sales in the U.S. spiked 41.6% year over year in the first quarter of 2021, with 49 of the most-populous cities registering an increase in transactions, according to a report on 21st April from Redfin.
The surge in sales of the top 5% of properties, Redfin’s definition of luxury, far exceeded other price brackets, the data showed. For example, expensive homes—the next tier down that includes properties priced in the 65th to 95th percentile of the market—saw a 15.3% annual rise in sales in the first quarter, the report found. Mid-priced residences, those in the 35th to 65th percentile, saw an uptick in sales of 5.9%, while deals in the tier below, with prices in the fifth to 35% percentile, registered a 7% increase.
“Sales growth has historically been similar across price tiers, but has diverged as the coronavirus pandemic has exacerbated economic inequality,” according to the report. “Affluent Americans with the flexibility to work from anywhere are taking advantage of low mortgage rates and buying up high-end houses—particularly in popular vacation destinations—which is contributing to the surge in luxury-home sales.”
Miami saw the biggest jump in luxury-home sales in the first three months of the year, registering a 101.1% year-over-year spike, the data showed. The California cities of San Jose, Oakland and Sacramento followed, with 92.3%, 82% and 79.3% more transactions, respectively. Las Vegas rounded out the top five with a 72.7% jump in pricey deals.
“Luxury properties, even those in the $3 million range, are getting multiple offers and going for well over the asking prices,” Katy Polvorosa, a Redfin real estate agent in Oakland, said in the report. “That’s something we haven’t seen before, even though the Bay Area has many affluent residents. Everyone just wants more space and big backyards, whether it’s because they’re stuck at home during the pandemic or because they have a growing family.”
Sales of luxury properties rose the least in Philadelphia, which saw only a 1% annual increase in the first quarter, according to the report. Boston saw 2.1% more deals, while transactions in Cleveland rose 3.9%.
RELATED STORY VIEW MORE
Nigeria Shows Widening Transparency Gap in Real Estate
Singapore Private Home Rents Set To Climb By 10-15%
Saudi Arabia’s Ambitious Projects from World’s Largest Airport to Skyscraper
NEWS LETTER
Subscribe for our news letter
E - PAPER
-
CURRENT MONTH
LAST MONTH
REALTY+ SPECIAL ISSUES
Test Magazine
THE TECH TITANS 2022
COFFEE TABLE BOOK 2022
Anniversary Issue 2022
Anniversary Issue 2020
VIDEO GALLERY VIEW MORE
