Photo: US Department of HUD/Flickr

Spurred by a booming economy, prices and sales heated up in July in the US luxury housing market.

Nineteen major markets saw double-digit price growth while luxury sales grew by over 10 percent from last year, according to a recent report by Realtor.com.

“The strong performance of luxury real estate in many markets around the country could be a contributing factor to the dearth of affordable properties for sale,” Danielle Hale, chief economist for Realtor.com, tells Livabl.

Realtor.com defines “luxury” as the top 5 percent of all residential sales. It analyzed the entry-level luxury price tier in 91 major US counties for the report.

Over the last year, the number of sales at or above the $1 million mark rose 12 percent in July. In over half of the markets analyzed, the entry price point for luxury housing was at least $1 million in July.

The pace of sales in the luxury submarket continued to set records in July. The median age of luxury for sale homes in the 91 markets analyzed was 108 days, down from 119 days in June 2018.

July’s record pace was faster than any July on record since Realtor.com began tracking the data in 2012.

Some 66 percent of luxury markets saw inventory sell faster in July compared to last year at the same time.

“Although there are some pockets of weaker performance, luxury homes are selling fast and demand for these homes has pushed the entry level price point to more than $1 million in half of the markets studied,” Hale added.

Sarasota, FL remained the fastest growing luxury market in July, with prices up 21.2 percent from last year. Homes sold within 157 days of listing, 21 percent faster compared to last year.

Queens, NY took the number two position, recording year-over-year price growth of 15.8 percent. The average entry-price for luxury homes in Queens is now $1.3 million — a record for the borough.

Maui, HI landed in the third position, with prices rising 14.7 percent annually in July.

The only other market in the Northeast to make the top 20 was Jersey City, which landed in the 11th position. The area now has a luxury price entry point of $1.3 million, up 11.5 percent from last year.

“In both places (Queens and Jersey City), price growth has stopped increasing, which indicates that they could be losing momentum,” writes Realtor.com in the report.

Meantime, northern California’s luxury submarket continued to thrive in July, with the region now housing 7 of the top 20 fastest-growing luxury markets in the country. The area has a booming tech industry and strong interest from foreign investors which drives the demand for luxury properties.

“This trend is in contrast to northern California’s mid-market price deceleration of recent months,” writes Realtor.com.

Click here to read the entire report.

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