4 minute read
LUXURY HOMES INDEX
THE BIG QUESTION.
HOW LONG WILL IT TAKE FOR MY LUXURY PROPERY TO SELL?
Each year, Concierge Auctions researches and provides insights into the most expensive property sales in the most desirable markets in the United States. The sixth edition of the Concierge Auctions Luxury Homes Index analyzes the 10 highest property sales in 56 top luxury markets across the United States to determine the impact that the number of days a high-end property is on the market has on its final sale price.
In this edition, Concierge Auctions’ research shows that even with the highest of luxury sales continuing to take longer to sell than the rest of the real estate market at large, either selling quickly and achieving a higher percentage of original list price or lingering on the market and ultimately selling at a significant discount, they are following similar trends, selling more quickly and achieving higher prices than in prior years.
NOW AVAILABLE: CONCIERGE AUCTIONS 2022 LUXURY HOMES INDEX. TO RECEIVE THE
COMPLETE COPY, CALL 212.984.3896 OR VISIT LUXURYHOMESINDEX.COM .
SOLD | BEL AIR, CA | $23.52M
The real estate market is hotter than ever, and the high-end is no exception. The longer a home takes to sell, the more skeptical buyers become about its value.
FINAL SALE PRICE
$21M
AVERAGE SALE PRICE $19M
$16M
$13M
$10M
2015 2016 2017 2018 2019 2020 2021
The average price of top sales in the 56 luxury markets evaluated in 2021 was $20,298,593. This is a 34% increase from $15,145,856 in 2020.
HOT VS COLD
The top sales in Palm Beach, FL achieved the highest average Sale Price of all 56 markets at $63,734,255, followed by the Hamptons, NY at $63,550,000 and Boca Raton, FL at $58,063,500—all three have seen a staggering nearly triple increase since 2019. By contrast, the lowest average Sale Prices achieved were in Philadelphia, PA at $4,409,900, and Morristown/Essex, NJ at $4,787,800. Both topped the list for lowest prices last year as well.
TOP TEN HIGHEST
1 Palm Beach, FL 2 Hamptons, NY 3 Boca Raton, FL 4 New York, NY 5 Holmby/Bel Air, CA 6 Beverly Hills, CA 7 Miami, FL 8 Aspen, CO 9 Lake Tahoe (CA/NV) 10 Brentwood, CA 1 Philadelphia, PA 2 Morristown/Essex, NJ 3 Boston, MA 4 Denver, CO 5 New Hampshire 6 Atlanta, GA 7 Westlake Village, CA 8 Chicago, IL 9 Houston, TX 10 Duval + St. Johns, FL
TOP TEN LOWEST
How long will it take for my luxury property to sell? The answer is simple: Create competition out of the gates, or prepare for a long listing period and lower your price expectation.
DAYS ON MARKET
Market with average DOM ≤180 Market with average DOM >180 All markets
AVERAGE DAYS ON MARKET 1,000
750
500
250
0
180 DOM
2015 2016 2017 2018 2019 2020 2021
The average Days On Market for the 56 markets evaluated in 2021 was 349 days, a 29.4% decrease from the 491 days in 2020.
Just over half of the top sales evaluated in 2021 were on the market more than 180 days. The average for the 49% properties listed for 180 days or less was only 83 days, on par with the last four consecutive years. By comparison, for the 51% listed more than 180 days, average Days On Market jumped nearly 650%, to an average of 614 days total.
HOT VS COLD
The lowest average Days On Market were in New Hampshire and Duval and St. Johns Counties, FL at 104 days and 133 days, respectively. By contrast, the highest were in Dallas, TX and Vero Beach, FL at 880 and 779 days.
TOP TEN HIGHEST
1 Dallas, TX 2 Vero Beach, FL 3 Park City, UT 4 Westchester County, NY 5 Miami, FL 6 Orange County, CA 7 Beverly Hills, CA 8 Fairfield County, CT 9 Nantucket, MA 10 Holmby Hills/Bel Air, CA 1 New Hampshire 2 Duval + St. Johns, FL 3 Palo Alto, CA 4 Brentwood, CA 5 Santa Barbara, CA 6 Pacific Palisades, CA 7 Lake Tahoe (CA/NV) 8 Philadelphia, PA 9 Morristown/Essex, NJ 10 Chicago, IL
TOP TEN LOWEST
% OF LIST PRICE
Market with average DOM ≤180 Market with average DOM >180 All markets
AVERAGE % OLP TO SP 100%
90%
80%
70%
60%
2015 2016 2017 2018 2019 2020 2021
The average percent of Original List Price achieved for the 56 luxury U.S. markets evaluated in 2021 was 88.8%.
Of these, the properties that sold within 180 days achieved 94.06% of their Original List Price. By contrast, those that took longer than 180 days to sell achieved just 80.6%. This over 13% difference can be substantial when dealing with multi-million dollar properties and does not include carry costs, property taxes, or other expenditures of both time and money.
HOT VS COLD
The lowest average percent of Original List Price achieved for top sales in 2021 were in the Hamptons, NY, at 62.95%, followed by Beverly Hills, CA, at 69.06%. Conversely, properties in Nantucket, MA achieved over asking price and the highest percent of Original List Price, at 116.61%, followed by Vermont at 97.51%.
TOP TEN HIGHEST
1 New Hampshire 2 Aspen, CO 3 Lake Tahoe, CA 4 Sonoma County, CA 5 Hamptons, NY 6 Denver, CO 7 Sun Valley, ID 8 Palo Alto, CA 9 Vail, CO 10 Telluride, CO 1 Beverly Hills, CA 2 Dallas, TX 3 Malibu, CA 4 Broward County, CA 5 Fairfield County, CT 6 San Diego County, CA 7 Westchester County, NY 8 San Francisco, CA 9 Tampa, FL 10 Atlanta, GA
