Luxury Homes Linger Longer Than Lower-Priced Houses
While the market for lower-priced and entry-level homes is showing signs of momentum, the luxury-home market seems to be stagnant.
The average days on the market for luxury homes — houses selling for more than half a million dollars — is 186 days, according to the Institute for Luxury Home Marketing’s weekly report. On the other hand, the national median for all homes dropped to 84 days in June, according to REALTOR.com MLS data.
Inventories of for-sale homes in the luxury market as well as median asking prices have mostly stayed stable since November, according to the ILHM.
Meanwhile, lower-priced homes are seeing falling inventories and list prices increase.
The dropping inventories in lower-priced homes may be helping to drive most of the momentum. For example, Sam Khater, a CoreLogic economist, estimates that lower-priced homes are appreciating three times faster than more expensive homes due to the lower inventories and higher buyer demand.