Redfin Reports the Typical U.S. Luxury Home Costs More Than Ever Before - Seite 2

The weekly average 30-year fixed mortgage rate has hovered between 6.6% and 7% since the beginning of 2024, more than double pandemic-era record lows. Elevated mortgage rates have driven down demand for the average American homebuyer, but rates are irrelevant to cash buyers.

Supply of luxury homes for sale posts biggest year-over-year increase on record

The total number of luxury homes for sale rose 12.6% from a year earlier in the first quarter, the biggest increase on record. That’s compared with a 2.9% decline in non-luxury inventory.

New listings of luxury homes soared 18.5% from a year earlier in the first quarter, the second consecutive quarter of double-digit increases. That’s roughly seven times bigger than the 2.7% increase for non-luxury homes.

Supply of luxury homes is shooting up for several reasons. One, the mortgage-rate lock-in effect has a lesser impact on luxury homeowners because they’re more apt to buy their next home in cash or be in a financial position to take on a higher rate. Two, owners of luxury homes, many of whom have a lot of equity, are putting their houses on the market to cash in while prices are at record highs. Three, luxury supply had a lot of room to grow, as it was sitting at low levels during the first quarter of 2023.

It’s worth noting that while luxury inventory is on the rise, total supply and new listings are below typical pre-pandemic first-quarter levels. Relatively low inventory is one reason luxury prices are increasing.

Metro-Level Luxury Highlights: Q1 2024

Redfin’s metro-level luxury data includes the 50 most populous U.S. metros. Some metros are removed from time to time, to ensure data accuracy. All changes noted below are year-over-year changes.

• Prices: The median sale price of luxury homes rose most in Providence, RI (16.2% increase to $1,400,000), New Brunswick, NJ (15% increase to $1,900,000) and Virginia Beach, VA (12.8% increase to $1,100,000). It fell in just eight metros, with the biggest declines in New York (-9.9% to $3,250,000), Austin, TX (-6.9% to $1,629,300) and Minneapolis (-2% to $975,000).
• Sales: Luxury home sales rose in just over half the metros. They increased most in Seattle (36.9%), Austin, TX (25.5%) and San Francisco (23.9%). They decreased most in Newark, NJ (-23.6%), Philadelphia (-23%) and Detroit (-19.4%).
• Active listings: The total number of luxury homes for sale increased most in Austin, TX (40.5%), Jacksonville, FL (35.9%) and Fort Worth, TX (32%). Total inventory fell in 15 metros, with the biggest declines in Detroit (-16.8%), Atlanta (-14.1%) and Chicago (-13%).
• New listings: New listings of luxury homes increased most in Jacksonville, FL (63.6%), Fort Worth, TX (41.7%) and Nassau County, NY (40.5%). New listings fell in eight metros, with the biggest declines in Detroit (-17%), Atlanta (-8.2%) and Chicago (-7.7%).
• Speed of sales: Luxury homes sold fastest in Seattle, Oakland, CA and San Jose, CA with median days on market of 9, 12 and 12, respectively. They sold slowest in Miami (118 days), Austin, TX (106) and Nashville, TN (104).

10 Most Expensive U.S. Home Sales: Q1 2024