Luxury homes sold at a slower pace in 2017, as more properties in the high-end market were put up for sale, according to a new realtor.com® report. The number of million-dollar listings grew by an average of 3.9 percent.
Luxury properties—defined as those with a sales price in the top 5 percentile—took 5.4 percent longer to sell in 2017 than in 2016, spending an average of 116 days on the market. Prices of luxury homes also increased 5.1 percent in 2017. The overall housing market posted a 6.9 percent year-over-year gain in sales prices. However, select markets, such as Hawaii, Colorado, and California, saw double-digit gains in luxury prices.
“Although 2017 was another strong year for the luxury housing market, it was once again outperformed by the U.S. market overall,” says Javier Vivas, director of economic research for realtor.com®. “Age of inventory in the top 5 percent of the market slowed significantly over the last year—a telltale sign that the supply in the luxury sector continues to outpace demand. Much of this slowing can be attributed to a wider selection of luxury homes for buyers and increased uncertainty over the last 12 months.”
Source: realtor.com®
