The luxury home real estate market picked up to end off 2015 on a positive note, breaking a nine month market slump. Sales for the top five percent of America’s most expensive homes rose by 3.1 percent over the last quarter of 2014.
Sale prices for the other 95 percent of homes grew 5.4 percent during the same period, gaining more than the luxury market for the fourth consecutive quarter.
The number of luxury properties for sale at a price point of $1 million dollars and above has dropped 6.4 percent from 2014. The lower inventory of high end homes is more than likely a major reason for higher listing prices in luxury homes.The end of year price increase is great news for luxury home investors, but experts are not jumping to say the increase will last.
Experts attribute an uncertain outlook for 2016’s luxury market to a fickle stock market and an economy taking a slower pace. This has shown to be a valid concern where large luxury markets such as Houston, Miami, Tampa, and Chicago declined in price.
Largest Gaining Cities
The luxury home prices in Philadelphia and Austin rose over 20 percent from the previous year. Austin is one of the fastest growing cities in America currently so it is no surprise that the luxury market has done well there.The growth in the Philly market is much more of a surprise and some think the uptick is due to the sale of many expensive condos right downtown.
Sacramento has also seen market growth, attributed to buyers searching for homes outside of San Francisco and Silicon Valley where inventory is low and prices have skyrocketed.
Tampa Florida showed a large drop in luxury home prices but top agents here believe it is due to buyers timing purchases with school schedules. Tampa has highly successful schools and the number of buyers is naturally lower in areas that are focused on education during this time of year.
Other cities that saw a decrease are Baltimore, Chicago, and Houston. Houston’s decline in market is an expected reaction to the falling oil prices.
Unequal Market Cities
Many south Florida cities have topped the Redfin list of most unequal cities in America luxury real estate. These cities include Miami Beach coming in at number one, Fort Lauderdale,Delray Beach, Boca Raton, Hollywood FL, Sarasota, West Palm Beach and more.
Things are looking up for the Wisconsin luxury market and it is a good time to own a luxury property. The best way to find the right luxury property for you is with an experienced luxury buyers agent.
There are beautiful luxury homes around Ozaukee and Washington County. View homes, large acreage, estate homes, etc… if you’re in the market for a luxury home, please contact me today. As an expert in this field, I can help you find, purchase and close with your interests in mind on a luxury home in Wisconsin.