Luxury Housing Markets Surging in May

According to a recent article from Realtor.com, the luxury housing market saw prices grow and inventory decline.

Here are some main points and findings:

  • Luxury demand in the New York metro area has shifted to markets beyond the five boroughs to places like the Hamptons, as well as various New Jersey locales.
  • Some key second-home markets also saw demand trends accelerate in response to COVID-19. Places like the Hamptons (Suffolk County), Palm Springs (Riverside County), and Greenwich, CT (Fairfield County) are drawing more views per property for million-dollar homes on realtor.com.
  • Inventory of million-dollar listings declined by 15.6 percent year-over-year in May, a slight uptick from historic declines in April.
  • New listings for million dollar homes are down 15.1 percent year-over year. However, this is a massive improvement over the 57.8 percent declines seen in April.
  • The luxury listing price entry point (top 5%) reached $2.97 million in May, up 6.1 percent year over year, outpacing the mid-market’s 1.6 percent growth. While this is an improvement from April’s growth, it is still far lower than the 15 percent growth seen at the start of the year.
  • Million dollar homes were selling in 89 days, 18 days slower than last year.
  • COVID-19 has slowed price growth, with just 25 of 94 tracked counties seeing price growth improve in May compared to the start of the year. Last year, 60 counties saw price growth improve during that same period.
  • Views per property for million dollar homes were up 7.3 percent year-over-year in May, recovering from a 9.5 percent decline in April, and a slight improvement over the pre-COVID growth of 6.2 percent.

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