Top tier properties are getting close to ending their multi-year buyers’ market and quickly reaching a more equal balance between buyers and sellers, catching up with less expensive homes .
Since early December, the Institute for Luxury Home Marketing’s Market Action Index has risen 30 percent and is now only seven points away from reaching a seller’s market on a national level. The index, which is managed by Altos Research, measures available supply relative to the current level of demand.
“The ILHM national market is currently in the buyer’s market zone though not strongly so. The Market Action Index stands this week at 23 so luxury buyers should expect to find reasonable levels of selection,” the report noted. On December 2, the index stood at 16.
The ILHM National Luxury Composite Price has risen 2 percent since December 30, from $1,196,838 to $1,221,962, despite the slow winter season. Despite the fact that the number of new listings has increased 51 percent over the past six weeks, the average days on market at 204 has declined slightly, from 209 to 204. Luxury homes typically take longer to sell than less expensive ones and the ILHM average days on market (204) are much higher than Realtor.com’s January median of 119 days for all price ranges. The percent of properties with a price decrease, another sign of buyer dominance, has also decreased over the past six weeks, from 26 percent to 24 percent of all luxury properties.
The index is rising in nearly every one of the 31 markets tracked by the institute. The ten hottest luxury markets are Washington DC where the average days on market is 123; San Francisco DOM 140, Las Vegas DOM 142, Silicon Valley DOM 157, San Diego DOM 161, Austin DOM 174, Seattle DOM 176, Houston DOM 178, Atlanta DOM 183, and Phoenix DOM 191.
Brokers and agents around the country report accelerated sales around the country. “After a substantial slump in 2008-2010, migration to Florida is accelerating again and is expected to generate new jobs and boost the continuing recovery. Buyers of lavish mansions and luxury homes for sale led the wave of those heading into Florida at the beginning of 2013. In Sarasota County in December 2012, 47 homes and condominiums sold for over $1,000,000, a figure higher than any other 2012 month,” reported William True of Sarasota Real Estate.