sheds some light on what\u2019s going on in LA\u2019s luxury market, noting that sales of high-end homes jumped 39 percent year-over-year in the first quarter of 2021. The \u201cluxury\u201d tier consists of homes in the top five percent of the market when ranked by price, according to Redfin\u2019s methodology.\u00a0<\/span><\/p>\nThe median sale price of a luxury home ticked up 3.3 percent annually to $3,150,000. Unlike other price tiers, new luxury listings actually increased by 17.6 percent compared to Q1 2020. Active listings, or total for-sale inventory, rose by 15.1 percent year-over-year. The typical luxury property in Los Angeles spent 78 days on the market, selling 13 days faster than the same period last year.<\/p>\n
\u201cWith a huge shortage of affordable homes for sale, many non-luxury homeowners are hesitant to put their properties on the market because they\u2019re worried they\u2019ll have trouble finding their next house,\u201d said Redfin Chief Economist Daryl Fairweather. \u201cThis isn\u2019t as big of an issue for luxury homeowners since there\u2019s a relative abundance of high-end homes to choose from.\u201d<\/p>\n
Nationwide, luxury home sales surged by 41.6 percent year-over-year in the first quarter, outperforming every other price tier. By contrast, affordable home sales ticked up 7 percent, while sales of mid-priced homes grew by 5.9 percent.<\/p>\n
Active luxury listings fell 5.1 percent annually in Q1 as new listings climbed by 15.8 percent. The median sale price amounted to $975,000, up 14.7 percent from a year earlier. On average, luxury homes sat on the market for 61 days, down from 99 days during Q1 2020.<\/p>\n
The markets that saw the biggest gains in luxury home sales included Miami, FL (101.1 percent), San Jose, CA (92.3 percent), Oakland, CA (82 percent), Sacramento, CA (79.3 percent), and Las Vegas, NV (72.7 percent).<\/p>\n
\u201cLuxury properties, even those in the $3 million range, are getting multiple offers and going for well over the asking prices,\u201d said Oakland, CA Redfin real estate agent Katy Polvorosa. \u201cThat\u2019s something we haven\u2019t seen before, even though the Bay Area has many affluent residents.\u201d<\/p>\n
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<\/a>Photo by Vita Vilcina<\/a> on Unsplash<\/a> <\/em><\/p>\n