Ultra-luxury real estate market en fuego in Boston
High-end home sales surged nationwide in the three months ended April 30 as prices also rose, according to a new Redfin report.
High-end home sales jumped 26% compared to a 14.8% increase in mid-priced home purchases and a 17.8% gain in affordable home purchases. An abundance of high-end homes hitting the market is helping this segment flourish, according to the report.
“So far, the economic recovery from the pandemic has disproportionately benefited Americans with bigger bank accounts,” Redfin Chief Economist Daryl Fairweather said in a press release. “This means a lot of the demand for homes is coming from folks who are well-off, while many lower-income Americans sit on the sidelines because they’ve been priced out of the housing market due to surging prices.”
San Francisco had the biggest surge inexpensive property purchases at 82.4%, followed by Oakland Calif. at 71.8%, Miami at 70.4%, San Jose, Calif. 66%, and Las Vegas at
The prices of high-end homes also grew faster than the prices of affordable and mid-priced homes in that time period. High-end home prices hit a new record, rising 14.3% year over year compared to a record 12.4% increase in the prices of mid-priced homes and a 10.2% increase in the price of affordable homes.
Austin, Texas high-end home prices jumped 24.1%, followed by San Diego, Calif. Which grew 18%, Miami at 17.7%, West Palm Beach, Fla. at 17.6%, and Phoenix, Ariz. 17.2%.
The number of high-end home listings also rose year over year during the three months ended April 30. Affordable listings grew 13.9% and mid-priced listings had a 9.1% increase.
Banker & Tradesman says the ultra-luxury real estate market is red-hot, these days.
A total of 81 condos with price tags of $2 million or more were sold through October, 37 percent higher than the same period in 2006. Sales are even brisker than the same months in 2005, when the Bay State housing market hit its peak, according to statistics from The Warren Group, the parent company of Banker & Tradesman.
One of the interesting parts of this what it means about the suburban real estate market, as well.
Presumably, those who are buying in Boston had to sell their existing homes in the suburbs. And, presumably, many of those homes were also $1 million+ properties. Meaning, there were buyers for them, as well.
(Yes, naysayers will point out that many of these sales happen in buildings where the buyers put down deposits as much as two years ago. True, but you are overemphasizing those. The majority of those that bought $2 million+ units were “traditional” buyers, only entering the market this year.)
Hey, any sale is a good sale, even a $2 million sale. Plus, we need the property tax revenue, right?
Source: Condo Market Enjoys Life of Luxury – By Aglaia Pikounis, Banker & Tradesman (subscription required)
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Updated: Boston Real Estate Blog Updated 2021