LUXU RY MARKET R E POR T - July 2020 -
www.LuxuryHomeMarketing.com
THIS IS YOUR
LUXURY MARKET REPORT !
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MAP OF LUXURY RESIDENTIAL MARKETS
W
elcome to the Luxury Market Report, your guide to luxury real estate market data and trends for North America. Produced monthly by The Institute for Luxury Home Marketing, this report
provides an in-depth look at the top residential markets across the United States and Canada. Within the
sold properties designed to showcase current market status and recent trends. The national report illustrates a compilation of the top North American markets to review overall standards and trends.
Copyright Š 2020 Institute for Luxury Home Marketing | www.luxuryhomemarketing.com | 214.485.3000 The Luxury Market Report is a monthly analysis provided by The Institute for Luxury Home Marketing. Luxury benchmark prices are determined by The Institute. This active and sold data has been compiled by various sources, including local MLS boards, local tax records and Realtor.com. Data is deemed reliable to the best of our knowledge, but is not guaranteed.
– LUXURY REPORT EXPLAINED – The Institute for Luxury Home Marketing has analyzed a number of metrics — including sales prices, sales volumes, number of sales, sales-price-to-list-price ratios, days on market and price-per-square-foot – to provide you a comprehensive North American Luxury Market report. Additionally, we have further examined all of the individual luxury markets to provide both an single-family homes and luxury attached homes. It is our intention to include additional luxury markets on a continual basis. If your market is in-depth reports on the luxury communities in your market are available as well. Looking through this report, you will notice three distinct market statuses, Buyer's Market, Seller's Market, and Balanced Market. A Buyer's Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point. By contrast, a Seller's Market gives sellers greater control over the price point. Typically, this means there are few homes on the market and a generous demand, causing competition between buyers who ultimately drive sales prices higher. A Balanced Market indicates that neither the buyers nor the sellers control the price point at which that property will sell and that there is neither a glut nor a lack of inventory. Typically, this type of market sees a stabilization of both the list and sold price, the length of time the property is on the market as well as the expectancy amongst homeowners in their respective communities – so long as their home is priced in accordance with the current market value.
REPORT GLOSSARY REMAINING INVENTORY: The total number of homes available at the close of a month. DAYS ON MARKET: Measures the number of days a home is available on the market before a LUXURY BENCHMARK PRICE: The price point that marks the transition from traditional homes to luxury homes. NEW LISTINGS: The number of homes that entered the market during the current month. PRICE PER SQUARE FOOT: Measures the dollar amount of the home's price for an individual square foot. SALES RATIO: favors buyers or sellers. Buyer's Market = up to 14%; Balanced Market = 15 to 20%; Seller's Market = 21% plus. If >100%, sales from previous month exceed current inventory. SP/LP RATIO: The Sales Price/List Price Ratio compares the value of the sold price to the value of the list price.
“This is a health crisis, rather than an economic one, which means that luxury real estate professionals must dramatically change their strategy when assisting their
knowledge, now equally important is their while matching the speed required for many of these transactions.�
NORTH AMERICAN LUXURY REVIEW How Are Luxury Properties Being Sold During the COVID-19 Pandemic? As we have reported for the last two months, prices for luxury properties have remained stable and, for the most part, inventory continues to be lower than expected at this time of year. In fact, this low inventory
reporting that buyer fear of COVID-19 is often smaller than their desire for new homeownership,� stated
Real estate brokerages throughout North America (and globally) have had to quickly adapt to meet this stay-at-home orders looked like they would greatly impede real estate. However, we have been encouraged by watching brokers, buyers, and sellers adapt quickly to a virtual and digital business. Technology has
This is a health crisis, rather than an economic one, which means that luxury real estate professionals their advisors based on their expertise and knowledge, now equally important is their agent’s ability to provide safety and security while matching the speed required for many of these transactions.
Jim Walberg, a luxury professional in The Bay Area Team for Compass and also a long-time member of The Institute states, “I believe that it’s critical to adapt, there is no point in thinking about how things were before. If you want to thrive and provide great service, then an agent’s duty is to understand and implement changes in line with our real estate board’s rules and regulations.” However, as the COVID-19 situation has clearly made apparent, the rules in each state are often very requirements that are often at odds. “It’s times like these that really underscore the value of working with a luxury real estate professional. Current market conditions are unique, so it’s important we understand all the nuances of these regulations to ensure our clients avoid unnecessary pitfalls,” stated Patrick Ryan, Owner of Genuine Real Estate Corp, Chicago and fellow Institute member. “In California, we have a very detailed 8-page set of compliance rules that we have to follow,” shared Walberg. “From ensuring buyers all wear masks, gloves, and booties to disinfecting every surface once a
Ryan concurred that these steps were also part of his showing routine, while addressing the demand
for turnkey properties in today’s market. “We have created a service called Genuine Detail that removes need to make a property move-in ready, but includes strict precautions to protect everyone involved in the process”. This may seem arduous to many, but these pandemic regulations have actually created an environment where only those truly looking to sell or buy are currently in the marketplace. “I not only ensure that the homeowner is willing to leave the house – often for the duration of the time the property is for sale – but many ways, this new norm has actually resulted in a more productive environment. John L. Scott Real Estate has implemented a major shift in their strategy for sellers. “Our agents are employing showing strategies that support social distancing. Instead of our typical Seller Listing Launch program centered around public open houses and early entry for neighbors, we’ve shifted to a Special
provide wellness questionnaires for our agents to use at check-in,” shared Scott. In many ways, these types of new strategies have been far easier to implement in the luxury market compared to the traditional more
familiar
with
stricter
protocols and have been using technology for many years to view properties, so generally, they
have
had
to
make
fewer adjustments. NextHome’s Robinson shared that Casan, their new luxury brand, is adding a new focus to their portfolio of services; using advances in technology to life
bring
their
through
a
listings
to
medium
of
interactive storytelling. “Where
we
see
the
future
is in telling the story of the home. Real estate isn’t a stack of numbers and data points for most buyers. It’s a home. We’re hyper-focused on telling the story of the home and then getting that story in front of as many people as possible. An example is a product that we
require for every single Casan listing, a Studeo Storybook,” explained Robinson. “This product brings the picture carousels, and animations to auditory enhancements, and more. We are moving past pictures a computer screen. It’s about connecting at a deep emotional level and creating a sense of “home” on the screen. Luxury isn't a word, it’s an experience. We’re committed to helping our agents provide their clients with the best possible experience.” Increasing numbers of luxury real estate professionals are drawing on these abundant digital marketing only encouraged by the engagement of consumer interest but are seeing results with luxury properties going under contract quickly. We asked Scott to share his insights about where the majority of these luxury buyers were coming from, as statistics are showing more localized purchases throughout North America. “Many luxury buyers are purchasing homes near their previous residence, but we have seen an uptick in high net worth individuals looking a bit further out to buy a second home or a new primary home in a remotely, areas that may have previously been out of reach are suddenly more appealing, particularly when they come with more privacy and resort-like settings. Now, it’s easy for anyone to “attend” an open house virtually from the comfort of their own home, so they can check out what’s available further
Debbie De Grote of Forward Coaching and Consulting and a preferred vendor of The Institute sums up this month’s report. “Now, more than ever, true professionals will shine because sellers and buyers are looking for guidance, whether it’s about safety, new regulations, marketing exposure, technology, recognize that there is an opportunity to net a high sales price in this currently low inventory market or
– 13 - MONTH MARKET TRENDS – FOR THE LUXURY NORTH AMERICAN MARKET Single-Family Homes
Attached Homes
Single-Family List Price
Attached List Price
DAYS ON MARKET
80
60
40
20
0 JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
PRICE PER SQUARE FOOT
$600
$500
$400
$300
$200
$100
$0
SALES PRICE VS. LIST PRICE
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
$1,750,000
$1,500,000
$1,250,000
$1,000,000
$750,000
$500,000
$250,000
$0 JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
Discrepancies in previous month statistics between the June 2020 and July 2020 reports are due to the addition of Will County, IL and Salt Lake City, UT.
– LUXURY MONTHLY MARKET REVIEW –
May 2020 | June 2020
SINGLE-FAMILY HOMES May
Median List Price Median Sale Price
June
May
June
$1,590,000 $1,600,000
46,383
45,501
13,601
14,648
6,530
10,830
36
35
3,552
3,609
$1,312,500
$1,312,000
Median SP/LP Ratio
96.89%
97.01%
Total Sold
Total Sales Ratio
14.08%
23.80%
Median Days on Market
$352
$347
Median Price per Sq. Ft.
1,047
4,300
New Listings
500
$
1
Total Sold
9.72% Sales Ratio
SINGLE-FAMILY HOMES MARKET SUMMARY | JUNE 2020 •
Seller's Market with a 23.8% Sales Ratio.1
•
Homes are selling for an average of 97.01% of list price.
•
The median luxury threshold2 price is $940,000, and the median luxury home sales price is $1,312,000.
•
Markets with the Highest Median Sales Price: LA Beach Cities ($4,025,000), Vail and
•
Markets with the Highest Sales Ratio: GTA-Durham (94%), Ada County Sacramento Seattle 1
– LUXURY MONTHLY MARKET REVIEW –
May 2020 | June 2020
ATTACHED HOMES May
Median List Price Median Sale Price Median SP/LP Ratio Total Sales Ratio Median Price per Sq. Ft.
1,333
June
May
June
$1,025,000 $1,050,000
17,261
17,946
$937,500
$900,000
New Listings
4,471
5,804
97.98%
98.67%
Total Sold
1,673
2,644
9.69%
14.73%
Median Days on Market
35
32
$467
$483
2,082
2,068
971
37,500
$
Total Sold
5.04%
3
Sales Ratio
ATTACHED HOMES MARKET SUMMARY | JUNE 2020 •
Buyer's Market with a 14.73% Sales Ratio.1
•
Attached homes are selling for an average of 98.67% of list price.
•
The median luxury threshold2 price is $702,450, and the median attached luxury sale price is $900,000.
•
Markets with the Highest Median Sales Price: Island of Hawaii ($2,285,000), and Maui
•
Markets with the Highest Sales Ratio: GTA-Durham Fairfax County (51%), and Tampa (48%). 1
Vail Marin County
– LUXURY MONTHLY MARKET REVIEW – SINGLE-FAMILY HOMES
State Market Name
Median List Price
Median Sold Price
New Listings
AB
Calgary
$1,100,000
$999,950
AZ
Paradise Valley
AZ
Phoenix
AZ
Scottsdale
AZ
Tucson
BC
Okanagan Valley
BC
Vancouver
BC
Victoria
$1,850,000
CA
Central Coast
$2,998,500
CA
East Bay
$2,185,000
$1,880,000
CA
Los Angeles Beach Cities
$4,850,000
$4,025,000
CA
Los Angeles City
$4,295,000
CA
Los Angeles The Valley
$2,244,000
CA
Marin County
154
CA
Napa County
149
CA
Orange County
$2,598,500
40
Balanced
CA
Palm Springs/Palm Desert
$1,822,500
58
Balanced
CA
Placer County
CA
Sacramento
CA
San Diego
CA
San Francisco
CA
San Luis Obispo County
CA
Santa Barbara
CA
Silicon Valley
194
Sold
Days on Market
Market Status
110
Balanced
20
Buyer's
151
Seller's 125
94
Balanced Seller's
$1,595,000
$992,500
$1,288,000
144
414
80
Buyer's
12
Buyer's
50 44
Buyer's 18
Balanced
12
Seller's
459
Buyer's 298
102
Buyer's Seller's
$885,000
180
28 40
51
18
Buyer's
89
Seller's
581
Seller's
$2,182,000
22 124
$1,500,000
180
Seller's
50
Seller's Seller's
N/A
252
Balanced Balanced
5
Seller's
– LUXURY MONTHLY MARKET REVIEW – SINGLE-FAMILY HOMES
State Market Name
Median List Price
Median Sold Price
New Listings
CA
Ventura County
$1,999,000
CO
Boulder
$1,950,000
CO
Colorado Springs
CO
Denver
CO
Douglas County
CO
Durango
$1,420,000
CO
Mountain Communities
$2,050,000
CO
Vail
$4,895,000
CT
Central Connecticut
CT
Coastal Connecticut
DC
Washington D.C.
FL
Boca Raton/Delray Beach
FL
Coastal Pinellas Towns
FL
Greater Fort Lauderdale
FL
Jacksonville Beaches
FL
Miami
FL
Naples
FL
Orlando
FL
Palm Beach Towns
FL
Sarasota & Beaches
FL
Tampa
$800,000
GA
Atlanta
$1,225,000
1,181
HI
Island of Hawaii
$2,299,500
144
HI
Kauai
Sold
Days on Market
95
Seller's
$1,505,500 145
$1,000,000
1,191
145
450
45
Balanced
18
Seller's
12
Seller's
$1,109,000
Seller's 125
$1,425,000
$584,950
248 14
452
$2,995,450
$1,850,000
Market Status
$1,500,000
5
Buyer's
4
Buyer's
142
18
14
Buyer's
40
Balanced
84
Buyer's
11
Balanced
50
Buyer's
15
Seller's Buyer's
$1,289,500
$1,100,000
282
45
1,229 $2,049,000 449
102
Seller's 88
Buyer's
85
Buyer's
45
84
Buyer's
$2,295,000
45
121
Buyer's
$1,815,500
48
89
Buyer's
49
Seller's
29
Balanced
188
94
204 22
14
Buyer's
2
Buyer's
– LUXURY MONTHLY MARKET REVIEW – SINGLE-FAMILY HOMES
State Market Name
Median List Price
Median Sold Price
HI
Maui
HI
Oahu
ID
Ada County
ID
Northern Idaho
IL
Chicago
IL
Will County
IN
Hamilton County
MA
Greater Boston
MD
Anne Arundel County
$995,000
$890,000
MD
Montgomery County
$1,850,000
$1,445,000
MD
Talbot County
$1,985,000
84
MD
Worcester County
$984,500
44
MI
Oakland County
MO
St. Louis
NC
Charlotte
NC
Raleigh-Durham
NJ
Ocean County
NV
Las Vegas
NV
Reno
NY
Brooklyn
NY
Nassau County
NY
Staten Island
NY ON
GTA - Durham
$1,995,000
New Listings 180 40
Sold
Days on Market
Market Status
9
Buyer's
11
Buyer's
142
12
$898,000
Seller's Balanced
$1,019,500
284
$550,000
54
99
Balanced Balanced Seller's Balanced
104 282
$991,100 909 $845,000
21
Seller's Seller's
14
Balanced 58
Buyer's
25
Balanced
54
24
Seller's
215
22
Seller's
201
2
Seller's
455
Seller's Seller's
$1,125,000 $1,549,000 981 52
112
Balanced
11
89
Buyer's
80
89
Buyer's
11
108
Buyer's
$1,198,500
$999,000
$1,555,000
$1,082,500
122
Buyer's
$999,900
$825,000
9
Seller's
– LUXURY MONTHLY MARKET REVIEW – SINGLE-FAMILY HOMES
State Market Name ON
GTA - York
ON
Oakville
ON
Toronto
TN
Knox County
TN
Nashville
TX
Austin
TX
Collin County
TX
Dallas
TX
Fort Worth
TX
Houston
TX
The Woodlands & Spring
UT
Park City
UT
Salt Lake City
VA
Arlington & Alexandria
VA
Fairfax County
VA
McLean & Vienna
VA
Richmond
WA
Greater Seattle
WA
Seattle
Median List Price
Median Sold Price
New Listings
Sold
Days on Market
$1,855,000 $2,495,000
Balanced
$2,050,000
142
9
11
Buyer's
115
11
Seller's
55
59
10
Seller's
129
101
12
Seller's
14
Seller's
29
Seller's
429 $824,900
$1,199,000
Market Status
$840,000 192
Seller's 219
210
22
$854,990
Balanced 148
105
29
24 $1,200,000
Seller's Buyer's
$985,000
Seller's 109
Buyer's 142
$2,199,000
Seller's
92
Balanced
$1,595,000
Balanced
$849,949
18
Seller's
$1,995,000
10
Seller's
8
Seller's
$1,505,000
125
– LUXURY MONTHLY MARKET REVIEW – ATTACHED HOMES
State Market Name
Median List Price
Median Sold Price
New Listings
Sold
248
95
18
Days on Market
Market Status
AB
Calgary
Buyer's
AZ
Paradise Valley
-
-
-
-
-
-
-
AZ
Phoenix
-
-
-
-
-
-
-
AZ
Scottsdale
AZ
Tucson
-
-
-
-
-
-
-
BC
Okanagan Valley
-
-
-
-
-
-
-
BC
Vancouver
52
9
Buyer's
BC
Victoria
CA
Central Coast
CA
East Bay
CA
Los Angeles Beach Cities
CA
Los Angeles City
CA
Los Angeles The Valley
CA
Marin County
$1,295,000
CA
Napa County
-
-
CA
Orange County
$1,084,000
$955,000
CA
Palm Springs/Palm Desert
-
-
CA
Placer County
-
CA
Sacramento
-
CA
San Diego
CA
San Francisco
CA
San Luis Obispo County
CA
Santa Barbara
CA
Silicon Valley
Balanced
$1,845,000
Buyer's $1,119,000
$950,000
41
11
8
$980,000 104 $1,499,000
$1,159,500
9
Seller's Balanced
28
Buyer's 20
Seller's
19
10
14
-
-
-
152
141
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
224
145
29
Seller's
22
Balanced
-
-
$1,125,000 $2,202,500
$1,449,500
Balanced
51
45
-
4
-
44
-
-
-
45
21
4
80
Seller's
-
Seller's
Buyer's 1
Seller's
– LUXURY MONTHLY MARKET REVIEW – ATTACHED HOMES
State Market Name
Median List Price
Median Sold Price
CA
Ventura County
48
CO
Boulder
CO
Colorado Springs
CO
Denver
CO
Douglas County
CO
Durango
CO
Mountain Communities
CO
Vail
CT
Central Connecticut
CT
Coastal Connecticut
DC
Washington D.C.
FL
Boca Raton/Delray Beach
FL
Coastal Pinellas Towns
FL
Greater Fort Lauderdale
FL
Jacksonville Beaches
$1,019,000
FL
Miami
$1,050,000
FL
Naples
$2,099,450
FL
Orlando
FL
Palm Beach Towns
FL
Sarasota & Beaches
FL
Tampa
GA
Atlanta
HI
Island of Hawaii
$1,899,000
$2,285,000
HI
Kauai
$1,299,000
$900,000
$895,000
$850,000
-
-
-
21
New Listings
Sold
20
12
Seller's
41
9
Buyer's
-
-
-
-
-
25
Seller's Seller's
5
121
1
Buyer's
89
4
Buyer's
-
-
-
-
51 421
90
29
48
Buyer's
80
Seller's
44
122
Buyer's
9
8
Seller's
58
184
Buyer's
24
51
Buyer's
104
Buyer's
22
121
Buyer's
25
129
Buyer's
15
$1,100,000 $1,250,000
41
Seller's 58
$822,500
$589,000
145 $580,000
Seller's 185
81
Buyer's 11
49
Buyer's
$1,850,000
$1,595,000
Balanced
12
244
$1,199,000
Market Status
-
4 9
$1,050,000
Days on Market
8
1
Buyer's Buyer's
– LUXURY MONTHLY MARKET REVIEW – ATTACHED HOMES
State Market Name
Median List Price
Median Sold Price
New Listings
Sold
21
8
HI
Maui
HI
Oahu
ID
Ada County
-
-
-
ID
Northern Idaho
-
-
-
IL
Chicago
$1,149,900
$920,000
IL
Will County
-
-
-
IN
Hamilton County
-
-
-
MA
Greater Boston
MD
Anne Arundel County
MD
Montgomery County
MD
Talbot County
MD
Worcester County
MI
Oakland County
MO
St. Louis
NC
Charlotte
NC
Raleigh-Durham
NJ
Ocean County
NV
Las Vegas
-
-
NV
Reno
-
-
NY
Brooklyn
$1,298,000
$1,141,000
NY
Nassau County
$1,450,000
$1,205,000
NY
Staten Island
-
-
-
-
-
$595,000
190
58
14
NY ON
GTA - Durham
$1,299,000
415
-
-
Buyer's
-
-
-
-
-
-
-
-
91
45
Buyer's
-
-
-
-
-
-
-
-
24
Buyer's
28
Seller's
14
Seller's
-
-
51
-
-
-
15
-
-
10
25
-
-
184 -
-
-
Buyer's 114
202 -
Market Status
21
$2,200,000 $550,000
Days on Market
Seller's 20
Buyer's
-
-
44
Buyer's
-
-
-
-
19
21
44
Seller's
-
-
-
-
-
-
-
-
-
-
80
Buyer's
141 12
92
Buyer's -
Buyer's Seller's
– LUXURY MONTHLY MARKET REVIEW – ATTACHED HOMES
State Market Name
Median List Price
Median Sold Price
ON
GTA - York
$850,000
$848,500
ON
Oakville
ON
Toronto
TN
Knox County
TN
Nashville
TX
Austin
TX
Collin County
TX
Dallas
TX
Fort Worth
TX
Houston
TX
The Woodlands & Spring
UT
Park City
UT
Salt Lake City
VA
Arlington & Alexandria
VA
Fairfax County
VA
McLean & Vienna
VA
Richmond
WA
Greater Seattle
WA
Seattle
New Listings
28
-
-
$949,900
-
-
-
$829,000 -
-
-
-
-
-
$1,000,000 -
-
$1,195,000
$985,000
154
10
Seller's
Seller's
-
-
-
-
44
12
114
Buyer's 21
Buyer's
-
-
-
-
59
14
49
Buyer's
-
-
-
-
15
48
Buyer's
-
-
-
8
140
Buyer's
-
11
Buyer's
59
Seller's
11 -
Buyer's 8
19 98
Market Status
251
125
$1,199,500
Days on Market
1
$1,288,888 -
Sold
5
Seller's
8
Balanced
-
-
-
-
100
55
11
Seller's
42
14
9
Buyer's