If you own a luxury home, you're in a great position right now. While other parts of the market have slowed down, the luxury market is still going strong. Buyer demand is rising, home prices are increasing, and well-priced luxury homes are getting plenty of attention. If you've been thinking about selling, this could be the perfect time to make your move.
Luxury Is Leading on Price
Let's start with home prices. But first, what exactly is considered a luxury home? In most markets, it's a home that's priced in the top 5% of all homes in the area. Since every market is different, the price point for a luxury home depends on where you live.
What's especially interesting is that the latest data from Redfin shows luxury home prices are rising much faster than the rest of the market. In fact, luxury home sale prices have increased about three times faster than non luxury homes.
Right now, the typical home's sale price is up about 1.5% compared to last year. But luxury homes are seeing even stronger growth, with sale prices climbing nearly 5% year over year, as shown in the graph below.
That’s more important than it sounds.
Even though you've probably heard a lot about home price growth slowing down, the luxury market is telling a different story. High end home prices are rising faster than many people expect, which is great news if you're thinking about selling. And that's only part of the picture.
Buyers Are Showing Up, Too
While many headlines suggest buyers are pulling back, that's not the case in the luxury market. In fact, the higher the price point, the more active buyers seem to be right now.
““The luxury market has really performed better compared to the lower price point. . . . if we look at price points, any home priced under $250,000, virtually no change in unit sales from one year ago. Then you go into the upper price category, and home sales are up about 10% from one year ago. But the million dollar-plus homes, it is up by 18% from one year ago.”
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In short, more luxury homes are selling right now. One reason is that high end buyers are usually less affected by affordability challenges, so they're more likely to keep buying even when the overall housing market slows down.
That strong buyer demand also means luxury homes aren't sitting on the market as long as they used to.
Luxury Houses Are Selling Relatively Quickly
According to the latest data from Redfin, luxury homes are selling in less than 50 days on average. That's much faster than what was typical before the pandemic, even compared to market trends going all the way back to 2014, as shown in the graph below.
That means you likely won’t spend much time waiting around wondering when an offer will come.
Bottom Line
Selling a luxury home is a major decision, and you should feel confident about it. With sale prices rising and high-end buyers active, now is a great time to make your move.
Ready to turn that equity into cash? Let’s map out a plan.
