WRE News August 1, 2024
Buyer
Luxury home value growth has outpaced appreciation on typical homes for the fifth consecutive month, according to a new data analysis from Zillow (NASDAQ:Z, ZG).
The typical luxury home – which Zillow defines as the most valuable 5% of homes in a specific market – is currently worth about $1.62 million. Zillow reported luxury home values are 3.9% higher than one year ago, compared to the 3.2% annual growth for the typical home.
However, luxury home inventory has been slower to recover than inventory overall, which is fueling the continued increase in prices. Inventory in the luxury segment is up 15.7% year-over-year and is 46.9% below pre-pandemic norms – in comparison, total inventory is 22.7% higher than last year and about 32.6% below pre-pandemic averages.
Among the major metro areas, Richmond recorded the greatest value acceleration at 16.5% year-over-year. Luxury homes in Richmond were sold in June after six days on the market, the fastest rate in the country. Austin was the only major market where luxury home values declined over the past year, down 1.5%.
“Luxury homes can be challenging to sell because the pool of buyers is so much smaller – that’s one reason prices for them usually grow more slowly,” said Anushna Prakash, economic research scientist at Zillow. “We’re seeing a different trend play out this year. Luxury home buyers are likely less affected by higher mortgage rates than a typical buyer, especially repeat buyers who saw their home equity soar over recent years. Many will be able to pay with cash and skip a mortgage payment altogether.”
Stay up to date on the latest real estate trends.
January 15, 2025
January 14, 2025
We’re officially in the winter stretch, and in many parts of the country, temperatures have plunged—leaving many homeowners struggling with how to beat the chill.
January 14, 2025
A cup of coffee is the quintessential staple of a morning routine—at least in the U.S.
January 14, 2025
Have you ever stopped to think about how much wealth you’ve built up just from being a homeowner?
January 13, 2025
As harrowing and out-of-touch as show business can be, celebrities’ most-relatable sides are exposed in the bonds they share with their pets.
January 13, 2025
Ferguson Partners, the Chicago-based talent management and strategic advisory firm for the real estate sector, announced the results of its first Artificial Intelligen… Read more
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today