Luxury home sales (valued at $1,000,000 or more) soared 19% higher in June from the previous year, and the prices continue to steadily rise as well. Climbing 7.5% from this time last year, the median sale price for a luxury home is currently outpacing the rest of the real estate market – something that hasn’t happened for over 3 years.
The data, collected by the National Association of Realtors, suggests that the luxury real estate market slump may finally be over. But it might not be why you think: interestingly, an article from CNBC speculates that the reason is because luxury sellers reduced their home prices in the past year in an effort to sell more quickly. As a result of the decreased prices, the number of sales surged and created a shortage of luxury homes for sale. The lack of supply has driven up the prices.
Regardless of the reason, all economic signs point to rosy conditions for luxury sellers. And if you’re buying a luxury home? Not bad news for you either – jumbo loan interest rates remain affordable. If you’re interested in learning more, be sure to give us a call at (215) 699-5555.