The Institute for Luxury Home Marketing (ILHM) has released its latest “Luxury Housing Report,” designed to provide insight into what’s happening in the luxury markets of 31 metro areas around the country. For each metro area, LHM ranks the zip codes by median price, takes the market data from the top ten zip codes with median prices above $500k, and creates a local composite that represents the top of the market. The report is prepared based upon Altos Research Company’s proprietary national data set. Keep in mind, this is active listing data, not historical MLS or closed transaction data; so you are looking at “what’s happening now,” not “what happened a couple of months ago.”
The report, released on May 23, 2016, looked at 25,262 luxury homes which have been on the market for an average of 150 days. The ILHM Luxury Composite Price this week was $1,558,269. The Market Action Index measures supply relative to the current demand, and an index market above 30 indicates that conditions favor the seller.
Real Estate Price Trends
Across the ILHM national sample, luxury home prices have remained stable in the past several weeks. This week, the median price is $1,558,269.
Price Per Square Foot
Changes in how luxury homes are valued–as well as how they are being constructed–can be measured by viewing changes in price per square foot. The current median price per square foot for luxury homes is $400.
Supply and Demand
Home prices are a function of supply and demand, and market conditions are characterized by looking at these factors. The ILHM national market is currently barely in the Buyer’s Market zone (below 30). With this week’s Market Action Index of 29, luxury buyers should see reasonable levels of selection.
Inventory data indicates the number of properties for sale in a given real estate market and will fluctuate seasonally. The Market Action Index (above) will allow you to gauge demand levels relative to inventory. As inventory increases or demand falls, the Market Action Index with quickly drop. The chart below shows teh total number of homes in the ILHM sample each week. These homes are listed for at least $500,000 in the top 10 zip codes for 31 major metro markets across the country.
Days on Market
Days on Market data indicates the health of the market and how long you might expect it to take to sell a home. Or, how quickly you should make an offer on a home you are considering purchasing. The properties in this report have been on the market for an average of 158 days.
Finally, the chart below provides a look at the local luxury markets across the country. As you can see, the Market Action Index in Raleigh-Durham is currently elevated.
For more information about this report, or any of your real estate questions or needs, contact Real Estate Experts any time at 919-813-6449 or [email protected] Visit us online at realestateexperts.net.