Compare Listings

Luxury Home Sales Surge During Pandemic

Luxury Home Sales Surge During Pandemic
By Prashant Gopal
Bloomberg News

Demand for luxury homes is soaring, underscoring how the pandemic has intensified wealth disparities in the U.S.

High-end sales jumped 42% in the third quarter from a year earlier, according to a report from brokerage Redfin. That’s the largest jump dating to 2013. Sales of midpriced homes climbed just 3%, while affordable purchases declined 4%.
While banks tighten credit for first-time buyers, the pandemic is hammering Americans who don’t have the privilege of working remotely. The wealthy, meanwhile, are benefiting from the surging stock market and mortgage rates near record lows.

The cheaper borrowing costs are driving demand for larger properties with more room to quarantine. And with many corporate workers no longer tethered to office buildings, there’s a shift away from expensive markets like San Francisco, New York and Los Angeles.

“Luxury listings are skyrocketing because high-end homeowners have the financial means and the flexibility to move during this pandemic. The growing supply of luxury homes for sale means that wealthy buyers have more options to choose from and a better chance of finding a home that checks all of their boxes.”

 

“The luxury housing market normally takes a hit during recessions as wealthy Americans tighten their purse strings, but this isn’t a normal recession,” Daryl Fairweather, chief economist at Redfin, said in a statement.

Even with low mortgage rates, first-time buyers could struggle to get approved for loans or find homes they can afford in a market where inventory is scare. And while housing has been a bright spot in the pandemic economy, the migration to the suburbs has been driven by wealthier Americans.

Luxury sales climbed 63% in California’s Inland Empire, east of Los Angeles, and 61% in Oakland, a more-affordable city across the bay from San Francisco. They also increased 61% in Portland, Oregon, and 60% in West Palm Beach, Florida.

The demand for high-end homes is driving up prices, which gained 6.5% from a year earlier, while values for the most affordable properties climbed 2.9%, Redfin said.

“Luxury listings are skyrocketing because high-end homeowners have the financial means and the flexibility to move during this pandemic,” Fairweather said. “The growing supply of luxury homes for sale means that wealthy buyers have more options to choose from and a better chance of finding a home that checks all of their boxes.”

Whether buying or selling, D’Lux Real Estate Services can help you “check all the boxes” when looking for that perfect home. See what we have to offer with our listings on http://dluxres.com. Get a free market analysis and get a consultation with our experts.

img

D'Lux Real Estate Services

Related posts

D’Lux is hiring Agents to join our growing Team

D'Lux Real Estate Services is seeking experienced, licensed Residential, Commercial and Industrial...

Continue reading
by D'Lux Real Estate Services

Your home mortgage or rent payment during the COVID-19 pandemic

D’Lux Real Estate Services has decided to explain some important information to avoid...

Continue reading
by D'Lux Real Estate Services

Pay high taxes where you are? Florida is ‘tax haven’ for luxury real estate

Article originally published in Media Group Lifestyle, by Randy Gilbert, JD. Used with...

Continue reading
by D'Lux Real Estate Services

Join The Discussion