RealtyBizNews - Real Estate Marketing and Beyond
Real Estate Marketing & Beyond
Home » Housing » US Real Estate » Luxury Real Estate » Luxury Homes are an Easier Sell

Luxury Homes are an Easier Sell

By Mike Wheatley | November 26, 2014

High-end homes are getting easier to sell, with the luxury market posting some of the largest increases in home sales compared to every other price category, according to the National Association of Realtors.


photo credit: Photo Dean via photopin cc

Sales of homes priced $1 million and above surged 16.2 percent year-over-year in October. On the other hand, overall home sales rose only about 4.7 percent during that time, according to NAR.

Also, inventory levels of higher-priced homes dropped by the largest amounts, falling to a 10.6-month supply. A year ago, supply was at 12.1 months. Inventory of all homes rose from a 4.9-month supply a year ago to a 5.1-month supply in October.

Million-dollar homes are likely selling more due to low interest rates and Americans regaining wealth in the stock market over the last five years. In particular, the market for vacation homes should improve as luxury sales continue to rise, notes Lawrence Yun, NAR's chief economist.

"The improving trends in the upper-end market do not mean Realtors should only chase this market," Yun writes at NAR's Economists' Outlook blog.

"First, the million-dollar-home market makes up only 2.2 percent of total sales. Second, even though this specific market may be improving, it is still not easy. The months' supply ... is 10.6 for $1 million homes. But it is less than 6 months for homes priced under $500,000 and 7 months for homes priced between $500,000 and $1 million."

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
  • Sign up to Realty Biz Buzz
    Get Digital Marketing Training
    right to your inbox
    All Contents © Copyright RealtyBizNews ยท All Rights Reserved. 2016-2024
    Website Designed by Swaydesign.
    linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram