Luxury homes have been spending about 16 percent less time on market since early March even though inventories have been rising, which is normal during the Spring buying season, according to the latest weekly report from the Institute for Luxury Home Marketing.
Days on market for all homes priced over $1 million has fallen to an average of 118 days, according to the latest weekly ILHM report, which is prepared by Altos Research. The spring time decline reflects a national trend in days on market measured by Altos, one of the few research firms that reports the number of days properties are listed on a multiple listing service.
Declining days on market coupled with rising inventories suggests that demand is getting stronger for upper tier properties, many of whom have undergone more than one price reduction. By contrast, when properties languish on market longer, pressure grows for price cuts. The ILHM reported 36 percent of properties have experienced a price reduction and 12 percent have been relisted.
Days on market began to decline in March, reversing a rise through the winter months. One fairly consistent trend that has been occurring in many local markets in recent months has been a rising average days-on-market (DOM) figure.
Total inventory in the 30 markets tracked by the ILHM report reached 33,099, with an average price of $1,062,379, which has been steady in recent weeks. New listings were virtually even with absorbed properties, suggesting demand is good, but the report’s Market Action Index still is a “cold buyers’ market.”