Redfin Report: Luxury Home Prices Held Steady in the Second Quarter
Prices for San Francisco’s high-end homes fell for second
consecutive quarter
SEATTLE–(BUSINESS WIRE)–Luxury home prices inched up 0.8 percent in the second quarter of 2016
compared to last year, according to Redfin (www.redfin.com),
the next-generation real estate brokerage. Redfin’s quarterly analysis
tracks luxury sales in more than 1,000 cities across the country and
defines a home as luxury if it is among the top 5 percent most expensive
homes sold in each city. While price growth in the high-end has been
sluggish, home prices in the bottom 95 percent of the market have gained
steadily around 5 percent each quarter for the past two years.
Inventory of homes priced above $1 million fell 0.5 percent from a year
prior and sales for homes priced above $1 million increased 10.7 percent.
After market volatility sent luxury prices tumbling 1.1 percent in the
first quarter, they found a footing in the second quarter as the global
markets stabilized. The stock market ended the second quarter rebounding
in a big way after seeing the largest one-day drop in equities in U.S.
history in the aftermath of Brexit.
“For the most part, the housing market can stomach large swings in the
stock market,” said Redfin chief economist Nela Richardson. “But there
are markets, like Silicon Valley, that become queasy when the equity
market is this volatile. In these areas, homebuyers’ wealth and
downpayments are more closely tied to stocks. In addition, foreign
buyers who normally flock to these cities are also highly sensitive to
global volatility. I expect a bit of motion sickness as high-end buyers
decide whether parking their money in real estate is a safe place in a
rocky global economy.”
Price trends varied in many of the luxury market’s bellwether cities.
Luxury prices were up in Miami Beach (21.6%), Boston (15.7%), Portland,
Ore. (15.2%) and San Diego (13.2%), and fell in San Francisco (-11.1%),
Scottsdale (-10.4%), Fort Lauderdale (-4.9%) and Bellevue, Washington
(-4.2%).
To read the full report, complete with city-specific data and charts,
please visit the following link:
https://www.redfin.com/blog/blog/2016/08/boom-or-bust-whats-going-on-with-luxury-home-prices.html
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About Redfin
Redfin (www.redfin.com)
is the next-generation real estate brokerage, combining its own
full-service agents with modern technology to redefine real estate in
the customer’s favor. Founded by software engineers, Redfin has the
country’s #1 brokerage website and offers a host of online tools to
consumers, including the industry’s most accurate home-value estimate,
the Redfin
Estimate. Homebuyers and sellers enjoy a full-service,
technology-powered experience from Redfin real estate agents, while
saving thousands in commission. Redfin serves more than 80 major metro
areas across the U.S. The company has closed more than $31 billion in
home sales, and saved customers more than $335 million in fees, and
counting.
For more information or to contact a local Redfin real estate agent,
visit www.redfin.com.
To learn about housing market trends and download data, visit the Redfin
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Contacts
Redfin Journalist Services:
Alina Ptaszynski, 206-588-6863
press@redfin.com
