Skip to main content

Q4 Luxury Home Sales Down

Phil Hall
Feb 07, 2019
Sales of homes priced at or above $2 million fell year-over-year by 3.9 percent in the fourth quarter of 2018

Sales of homes priced at or above $2 million fell year-over-year by 3.9 percent in the fourth quarter of 2018, according to new data from Redfin. This represents the first time in more than two years sales of luxury homes have declined on an annualized basis.
 
But while sales fell, prices rose. The average sale price for luxury homes nationwide rose 4.7 percent annually to an average of $1.77 million in the fourth quarter of 2018. This was up from a 3.2 percent growth rate in the third quarter. In comparison with the rest of the market, home prices grew 4.3 percent to an average of $341,000 in the fourth quarter.
 
The typical luxury home that sold in the fourth quarter went under contract in 74 days, down from 78 days one year earlier. In comparison, non-luxury homes took 56 days to go under contract in the fourth quarter, down from 63 days one year earlier.
 
“In the fourth quarter of 2018 there was a lot of economic uncertainty—mortgage interest rates peaked in November, and the stock market was all over the place,” said Redfin Chief Economist Daryl Fairweather. “This may have encouraged luxury sellers to hold on to their real estate assets and also caused luxury buyers to be reluctant to make major home purchases. There's also economic uncertainty abroad. For example, China's economy slowed down at the end of 2018, which may be affecting a segment of U.S. luxury sellers and buyers whose wealth is invested overseas. Finally, it's worth noting that when we're examining the most expensive segment of the housing market nationwide, a disproportionate amount of the movement seen in prices and sales is driven by activity—or lack thereof—in major expensive coastal markets like San Francisco and San Jose, where sales fell by double digits while price growth slowed or reversed at the end of the year.”

 
Published
Feb 07, 2019
Nations Lending Opens Another Branch In Arizona

New Scottsdale branch welcomes Arizona native Christine McConnell as lead personal mortgage advisor.

Industry News
Sep 26, 2022
Nominations Open For Industry Titans Award

NMP Magazine to honor people who represent industry with professionalism.

Industry News
Sep 23, 2022
Fidelity National Names New HR Chief

Melissa Circelli previously held same position at Black Knight.

Industry News
Sep 23, 2022
Ruoff Mortgage Lays Off Nearly 5% Of Staff

Company announced the layoffs Sept. 16, citing 'economic conditions.'

Career
Sep 21, 2022
SPS Acquires Rushmore Loan Management Services

The acquisition will include hiring Rushmore servicing personnel and assuming Rushmore servicing contracts.

Industry News
Sep 19, 2022
Fannie Mae Names New EVP, Chief Risk Officer

Former Morgan Stanley exec has nearly 30 years of risk management experience.

Industry News
Sep 15, 2022