For the first time since the Institute for Luxury Home Marketing began tracking upper tier market trends in 2008, its Market Action Index hit the threshold that separates buyer’s and seller’s markets earlier this month.
The highest tier of homes for sale, homes priced over $500,000, has been the last part of the market to feel the effects of the housing recovery. On June 2, the ILHM reported its Market Action Index had reached 30 for the first time and in subsequent weekly reports the index has maintained its position.
“The ILHM National market is currently slightly in the Seller’s Market zone (greater than 30).The Market Action Index stands at 30 which indicates that luxury demand is relatively strong but the available supply of new listings doesn’t get acquired immediately,” the ILHM noted in its June 23 report.
The ILHM Luxury Composite Price for the week ending June 23 was $1,273,414 and the asking price per square foot was $324. Homes have been on the market for an average of 151 days.
“I believe that it was in the first week of June that we first saw the Market Action Index hit the 30 threshold which defines the entry point into a “Seller’s Market.” All month it is has been trending along right around that 30 mark,” said Waco Moore, the Institute’s president. ILHM staff could not identify a time when institute’s market index crossed over into seller’s territory in the past five years.
Hot markets in the ILHM report where luxury properties on selling on average faster than the national average last week were Atlanta, Boston, Dallas, Washington, Las Vegas, Los Angeles, San Francisco, Seattle and Silicon