July's Luxury Homes Market Report

LUXU RY MARKET R E POR T - July 2020 -

www.LuxuryHomeMarketing.com

THIS IS YOUR

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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