Sales of luxury homes climbed in the second quarter of this year – up 7.5 percent from 2016. The increase gives the average luxury home a price tag of $1.79 million based on 1,000 cities across the U.S. defined by Redfin as the luxury market.
Prices for the upper class of homes had been lagging behind the rest of the market since 2014. The ongoing housing shortage has also made an impact on the high end of the market as well according to Redin Chief Economist Nela Richardson who says "the number of million dollar-plus homes for sale dropped by 9.4 percent" over the last year. Homes at or above $5 million also saw a decline – 9.5 percent year-over-year.
Sales for luxury homes were strong. Sales of homes priced at or above $1 million were up 22.2 percent from 2016 which suggests that high-end buyers have confidence in the economy and the housing market as a safe place to invest wealth.
Today, conforming no-point 30-year fixed mortgage rates averaging 4 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.