Real estate experts have noted a recovery of the prices for luxury homes before the year 2015 ended. Short inventory of high-value homes and new developments of multi-million dollar condos in a lot of cities was pointed out to be the reason for the increasing prices.
Realty Biz News reports that the prices of high cost homes in the real estate sector finally recovered before bidding 2015 goodbye after a 9 month drought. A 3.1 percent price increase of the top 5 percent most expensive homes was noted at the last quarter of 2015. Philadelphia, Austin and Sacramento were the areas that had the largest increase with the first two areas having an average price increase of more than 20%. This was in comparison with the data a year before.
Investors of luxurious real estate may find this very favorable for them but it may not last longer than expected according to experts. As areas such as Miami, Houston, Chicago and Tampa which have huge luxurious areas have already experienced a drop in prices. Experts say that a dragging economy and an unstable stock market may be major factors.
Some of the $1 million or more homes had prices dropping to 6.4% in contrast to the year before. While the 95% of the remaining inventory in the market saw a 5.4% increase in sales. Sacramento had a 12.6% price increase on the top of the line listings of homes. While Baltimore had the biggest drop in prices with a 17.9% slump followed by Tampa Florida with a 14.7% plunge.
Business Wire adds that Nela Richardson, a Redfin chief economist somehow sees this as a trend that will most likely be short-lived. Richardson pointed out a specific percentage increase of 12.6 percent, 22.5 percent and 25.4 percent for Sacramento, Austin and Philadelphia respectively. They anticipated a boost in prices for Miami, Tampa and Chicago but instead saw the complete opposite result.
REDFIN shows a detailed and tabulated result of the average home prices from the first quarter of 2012 to the last quarter of 2015. They also posted a Q4 summary of the top 5% luxury market and the rest of the market.
The site also noted Austin as one of the "fastest growing cities in the U.S." More tables were shown wherein there were "Biggest Winners" and "Biggest Losers" of particular cities across the nation. One can find the average sale price of both the top 5% luxury market and the remaining market with an adjacent YOY change figure to complete the set.
A data of the "Most Unequal Cities" is also shown in detail on the average luxury sale price compared to the remaining 95% of the real estate market.
What do you think of the changes in prices of the areas in the United States?
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