The luxury housing market is heating up, according to industry experts! Luxury home values dropped significantly in the first quarter of the year, largely due to stock market volatility. High-priced homebuyers tend to be far more sensitive to any changes in the stock market than the average buyer and unlike most buyers, luxury buyers aren’t particularly motivated by low mortgage rates.
The biggest factor for the luxury market, however, might be the strong jobs report that was released in July. One of the best indicators of a healthy economy, the better-than-expected report may be a sign to luxury homebuyers that now is a solid time to invest.
Luxury homes tend to be defined as the top 5% of any given market, which varies considerably around the globe. In Greater Philadelphia, a million-dollar price point is the simple definition of a luxury home, although $750,000 is a more accurate number in some neighborhoods.