Photo: Coldwell Banker via joycerey.com
Sales of $1 million-plus homes continue to outperform the rest of the housing market in the third quarter, according to a Redfin report released yesterday.
Luxury home sales increased by 9 percent while sales in the overall market slipped 1.2 percent from the same period last year.
California cities posted the most million-dollar-home sales in the third quarter; San Francisco took the top spot with 782 sales in the luxury category, while Los Angeles was No. 2 with 761 sales and San Jose was No. 3 with 363 sales. Chicago, the only non-Californian city in the top five, took fourth place with 345 sales of million-dollar homes, followed by San Diego with 293 sales in the luxury sector.
In the No. 6 slot, Houston was a “clear standout,” with a 42 percent increase in sales of homes priced $1 million or more since last year. The average year-over-year increase for the 385 cities that had million-dollar home sales in the third quarter was 17 percent.
“The luxury home market in Houston is thriving in large part because of the strong and diverse job market,” Redfin agent Tara Waggoner said in a statement. “Energy and technology companies like Exxon Mobil are hiring employees away from the coasts. Those people are shocked at how much home they can get for $1 million in Houston.”
The Redfin report also analyzed seven markets traditionally driven by international investors in the pricey residential end: Los Angeles, Orange County and Riverside-San Bernardino in California; Miami, Orlando and Fort Lauderdale in Florida; and Las Vegas. In those markets, year-over-year growth has waned in the past year, from a robust 46 percent to just 5 percent. With lagging international investor interest in luxury properties, interest rates are anticipated to rise, driving up prices. Meanwhile, the supply of homes priced at $1 million or more decreased by 13 percent in the third quarter compared to last year.