Janet Sher Luxury Market Report November 2018

Page 1

JANET SHER L U X U RY MARKET REPORT

HOUSTON NOVEMBER 2018


JANET SHER

REALTOR®, CNE, GRI, ILHM Member

832.895.9077

Janet.Sher@GaryGreene.com www.SHERJanetsRealEstate.com As a REALTOR®, I prefer to focus my best efforts on you, my client. Whether you need help with marketing, negotiating the best deal, or just finding that perfect home, I am able to not only meet but exceed expectations every time. I hope you will think of me whenever you, or someone you know, is considering buying, selling, relocating, or investing in properties. Let Me “SHER” Your Real Estate Experience With YOU!


TABLE OF CONTENTS PAGE 4

LUXURY REPORT EXPLAINED

PAGE 5

WELCOME MESSAGE

PAGE 6-8

NORTH AMERICAN LUXURY MARKET REVIEW

PAGE 9

13 MONTH MARKET TRENDS

PAGE 10

SINGLE FAMILY HOMES MONTHLY OVERVIEW

PAGE 11

ATTACHED HOMES MONTHLY OVERVIEW

PAGE 12-14 MONTHLY STATISTICS BY CITY - Single Family Homes PAGE 15-17 MONTHLY STATISTICS BY CITY - Attached Homes PAGE 19

LOCAL LUXURY MARKET REVIEW

PAGE 20-21 SINGLE FAMILY HOMES - Monthly Statistics PAGE 22-23 ATTACHED HOMES - Monthly Statistics PAGE 24

THANK YOU


– 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 overview and an in-depth analysis - including, where data is sufficient, a breakdown by luxury single-family homes and luxury attached homes. It is our intention to include additional luxury markets on a continual basis. If your market is not featured, please contact us so we can implement the necessary qualification process. More indepth 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 purchase offer is accepted. 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: Sales Ratio defines market speed and determines whether the market currently 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 exceeds 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.


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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 individual markets, you will find established luxury benchmark prices and detailed survey of luxury active and 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 © 2018 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 annually. 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.


NORTH AMERICAN O C TO B E R LUXURY REVIEW 2 0 1 8 THE SHIFT INTO CHANGE Today, we are reporting from The Institute for Luxury Home Marketing’s signature event – Leaders in Luxury – where both industry leaders and some of the finest minds in luxury real estate come together to review, network, and anticipate the future of the market. This year’s event focused on addressing the concerns of ‘the winds of change,’ claims of a slowing market to forecasts of recession by 2020. However, in her opening statement, Institute President Diane Hartley stated that she believes 2019 will actually be a year of opportunity for both sellers and buyers provided that they remain agile, innovative, and adaptable to their local market influences. Leslie Appleton-Young, Chief Economist for the California Association of REALTORS®, gave the attendees a new view: From Great to Good. In a masterfully in-depth review of the real estate market, she highlighted all the variables from inventory and pricing to equity markets, job growth, home equity, inflation, and personal wealth that impact a market, and coined our current situation as “Great to Good.” The luxury market is often considered a barometer during times of change and this month’s statistics show a move back into a balanced market – with increases in sold prices and volume of sales - that further goes to validate Leslie’s belief that “uncertainty” and “affordability” are the causes of flux at this time. As Leslie stated, “investment in real estate needs to be viewed over the long term – not just compared to the last month – only then will the story become obvious.” Long term statistics show that the market is now moving at a more even rate rather than at the


rapid, overcharged pace following the market crash in 2008. In looking at the overall North American luxury market data, comparing month-overmonth and over the last 18 months, the picture is clear. Single-family luxury home prices have fallen as much as 5% from one month to the next, but over the last 18 months, the median sold price has remained right around $1.4 million, illustrating a steady stabilization of the market. Attached luxury homes faced as much as an 8% drop month-over-month, and yet the median sales price is consistently around $915,000. The statistic with the greatest drama has been days on market for single-family homes, which has seen a high of 62 days and a low of 31. Upon closer look however, these numbers are merely conforming to traditional swings from the winter to spring market. The luxury single-family median days on market has since swung back up to 53 as we move towards the winter season. In these cases, Leslie's investment advice proves true. While at microscopic scrutiny, the luxury real estate market may look like a downward trend, viewed through a larger lens, it proves to be a "good" stable market. The economies of Canada and the US are considered to be in strong positions, and the small concessions by both sides in the recent agreement to uphold the 25-year free-trade relationship will have little consequence. If employment is at an all-time high, unemployment at its lowest, little change in inflation, and consumer confidence at its highest, then what is causing this uncertainty in the housing market? In strong economies, it is typical for governments to raise interest rates and this together with affordability could be the tipping point. With increased home values (due to the escalating prices since 2009), any


small increase in the rate of interest on the mortgage will actually have a significant impact on a household’s disposable income. This also affects the amount required for a down payment and income level required to qualify for a mortgage. Supply and demand are also key factors in today’s market with price points in some markets far outside the reach of its general population, especially in the higher priced coastal regions. This affordability problem has further created a supply disconnect. While the quantity of higher priced homes on the market is increasing, supply has not kept up with demand in lower priced areas which, in turn, is causing prices to increase. The increased inventory in the high-end market does create an opportunity for buyers. Those who previously could not purchase a home due to lack of inventory have come back into the market to find a home – and at a more leisurely pace! So as you can see, these few variables can create uncertainty in the market. As to where this leaves the luxury real estate market and future predictions for 2019 – in terms of price points, it is predicated that we will simply see a slowing of the price growth rather than the next great implosion. The stabilization of the price point will naturally slow the market’s investors as will the situation that long-time homeowners are not moving in the volumes expected. Typically these homeowners are "baby boomers" with high equity values and low mortgage rates who are concerned about where they will go and how their mortgage rate will be affected. The luxury market's slow-down is also related to world trade activities; the affluent of countries with political and financial uncertainty still find North America a highly desirable destination to invest in real estate. However, the current demand from the global investor is reported to be softening, with many investors waiting to see if prices will be affected by increasing inventory. In conclusion, we refer back to Diane Hartley's comment that both sellers and buyers need to remain agile and fully aware of the variables affecting their real estate investment portfolio.


– 13 - MONTH MARKET TRENDS* – FOR THE LUXURY NORTH AMERICAN MARKET

Single-Family Homes

Attached Homes

Single-Family List Price

Attached List Price

All data is based off median values. Median prices represent properties priced above respective city benchmark prices.

60

63

59

54

62 53

52

35

29

42

41

40

35

31

36

31

37

32

32

31

APR

MAY

JUN

JUL

$506

40

53

46

43

$514

DAYS ON MARKET

80

29

38

36

AUG

SEP

42

20

0

OCT

NOV

DEC

JAN

FEB

MAR

OCT

$517 $357

$535 $323

$488 $316

$503 $321

$527 $354

$357

$319

$503 $334

$478 $335

$497

$482 $336

$300

$322

$482

$400

$357

$500

$500

$344

PRICE PER SQUARE FOOT

$600

$200

$100

$0

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

SEP

OCT

SALES PRICE VS. LIST PRICE

$2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

Discrepancies between statistics published between the September 2018 and October 2018 Luxury Market Reports are due to the reconfiguration of Brooklyn, NY.


– LUXURY MONTHLY MARKET REVIEW – A Review of Key Market Differences Month Over Month September 2018 | October 2018

SINGLE-FAMILY HOMES September

October

September

October

Median List Price

$1,695,000 $1,676,500

Total Inventory

41,036

41,189

Median Sale Price

$1,400,000 $1,430,000

New Listings

10,163

10,273

4,558

5,388

53

53

3,760

3,740

Median SP/LP Ratio Total Sales Ratio Median Price per Sq. Ft.

97.01%

96.87%

Total Sold

11.11%

13.08%

Median Days on Market

$323

$357

Average Home Size

Median prices represent properties priced above respective city benchmark prices.

110

830

New Listings

Total Sold

 

0

1.97%

Med. Sale Price

Days on Market

Sales Ratio

30,000

$

SINGLE-FAMILY HOMES MARKET SUMMARY | OCTOBER 2018 •

Official Market Type: Buyer's Market with a 13.08% Sales Ratio.1

Homes are selling for an average of 96.87% of list price.

The median luxury threshold2 price is $1,000,000, and the median luxury home sales price is $1,480,000.

Markets with the Highest Median Sales Price: LA-Beach Cities ($3,937,500), Vancouver ($3,550,000), San Francisco ($3,450,000), and Washington D.C. ($3,387,500).

Markets with the Highest Sales Ratio: Silicon Valley (59%), San Francisco (57%), Seattle (37%), and Sacramento (32%).

1

Sales Ratio defines market speed and market type: Buyer's = up to 14%; Balanced = 15 to 20%; Seller's = 21% plus. If >100%, sales from previous month exceeds current inventory. 2The luxury threshold price is set in December of each year by The Institute for Luxury Home Marketing.


– LUXURY MONTHLY MARKET REVIEW – A Review of Key Market Differences Month Over Month September 2018 | October 2018

ATTACHED HOMES September

Median List Price Median Sale Price

October

$1,034,750 $1,003,250 $869,500

$904,500

Median SP/LP Ratio

98.10%

97.94%

Total Sales Ratio

11.25%

11.80%

$535

$517

Median Price per Sq. Ft.

September

October

14,918

15,487

New Listings

4,128

4,166

Total Sold

1,678

1,828

36

42

2,017

1,970

Total Inventory

Median Days on Market Average Home Size

Median prices represent properties priced above respective city benchmark prices.

38

150

New Listings

Total Sold

7

0.55%

Med. Sale Price

Days on Market

Sales Ratio

35,000

$

ATTACHED HOMES MARKET SUMMARY | OCTOBER 2018 •

Official Market Type: Buyer's Market with an 11.8% Sales Ratio.1

Attached homes are selling for an average of 97.94% of list price.

The median luxury threshold2 price is $731,250, and the median attached luxury sale price is $904,500.

Markets with the Highest Median Sales Price: Vail ($3,387,500), San Francisco ($2,297,500), Greater Boston ($2,075,000), and Naples ($1,900,000).

Markets with the Highest Sales Ratio: Marin County (111%), Silicon Valley (103%), LA-The Valley (32%), and Fairfax County (31%).

1

Sales Ratio defines market speed and market type: Buyer's = up to 14%; Balanced = 15 to 20%; Seller's = 21% plus. If >100%, sales from previous month exceeds current inventory. 2The luxury threshold price is set in December of each year by The Institute for Luxury Home Marketing.


– LUXURY MONTHLY MARKET REVIEW – SINGLE-FAMILY HOMES State Market Name

Median List Price

Median Sold Price

Inventory

New Listings

Sold

Days on Market

Market Status

AB

Calgary

$1,152,450

$1,010,500

720

171

79

42

Buyer's

AZ

Paradise Valley

$3,000,000

$2,455,000

224

40

10

36

Buyer's

AZ

Phoenix

$699,000

$655,176

844

244

168

66

Balanced

AZ

Scottsdale

$1,625,000

$1,430,000

847

221

84

120

Buyer's

AZ

Tucson

$750,000

$637,000

755

177

83

38

Buyer's

BC

Okanagan Valley

$1,650,000

$1,485,000

625

114

20

100

Buyer's

BC

Vancouver

$3,980,000

$3,550,000

1,404

340

55

36

Buyer's

BC

Victoria

$1,799,900

$1,502,500

373

100

44

57

Buyer's

CA

Los Angeles Beach Cities

$4,724,000

$3,937,500

410

117

62

42

Balanced

CA

Los Angeles City

$3,995,000

$3,090,000

929

308

125

31

Buyer's

CA

Los Angeles The Valley

$2,125,000

$1,820,250

676

217

138

39

Balanced

CA

Marin County

$3,695,000

$2,800,000

132

30

42

28

Seller's

CA

Napa County

$3,292,500

$2,335,000

126

20

15

76

Buyer's

CA

Orange County

$2,299,950

$1,845,000

1,660

416

249

53

Balanced

CA

Palm Springs & Palm Desert

$1,795,000

$1,325,000

505

174

35

111

Buyer's

CA

Placer County

$1,075,000

$850,000

243

56

42

56

Balanced

CA

Sacramento

$788,944

$704,000

852

300

274

27

Seller's

CA

San Diego

$2,211,000

$1,700,000

1,344

415

243

47

Balanced

CA

San Francisco

$3,847,500

$3,450,000

92

39

52

14

Seller's

CA

Santa Barbara

$3,795,000

$2,482,500

271

47

26

63

Buyer's

CA

Silicon Valley

$3,982,504

$3,125,000

236

114

139

11

Seller's

CO

Boulder

$1,750,000

$1,321,350

208

50

46

62

Seller's

Median prices represent properties priced above respective city benchmark prices.


– LUXURY MONTHLY MARKET REVIEW – SINGLE-FAMILY HOMES State Market Name

Median List Price

Median Sold Price

Inventory

New Listings

Sold

Days on Market

Market Status

CO

Denver

$929,200

$840,000

1,176

324

336

22

Seller's

CO

Douglas County

$1,299,000

$1,024,000

312

49

45

65

Buyer's

CO

Vail

$4,500,000

$3,100,000

127

6

14

99

Buyer's

DC

Washington D.C.

$3,195,000

$3,387,500

63

12

4

166

Buyer's

FL

Boca Raton & Delray Beach

$2,100,000

$1,925,000

588

98

34

95

Buyer's

FL

Greater Fort Lauderdale

$1,299,000

$932,500

1,638

315

133

105

Buyer's

FL

Jacksonville Beaches

$1,234,000

$1,100,000

325

54

35

108

Buyer's

FL

Miami

$1,299,900

$930,000

1,463

265

67

125

Buyer's

FL

Naples

$1,890,000

$1,699,250

1,205

228

68

108

Buyer's

FL

Orlando

$1,599,000

$1,295,000

535

65

37

90

Buyer's

FL

Palm Beach Towns

$2,999,000

$2,200,000

375

69

25

126

Buyer's

FL

Sarasota & Beaches

$1,670,000

$1,287,000

542

97

20

119

Buyer's

GA

Atlanta

$1,150,000

$975,000

1,420

353

153

37

Buyer's

HI

Kauai

$1,999,999

$1,650,000

466

64

37

47

Buyer's

HI

Maui

$2,972,500

$2,030,000

194

28

11

123

Buyer's

IL

Chicago

$1,250,000

$1,008,531

2,003

503

198

80

Buyer's

MA

Greater Boston

$2,995,000

$3,000,000

125

30

23

19

Balanced

MD

Montgomery County

$1,695,000

$1,350,000

365

81

41

54

Buyer's

MI

Oakland County

$741,250

$645,000

1,206

358

157

35

Buyer's

MO

St. Louis

$750,000

$646,700

245

55

44

21

Balanced

NC

Charlotte

$898,500

$775,000

1,025

175

153

40

Buyer's

NC

Raleigh-Durham

$716,775

$663,500

1,032

198

161

5

Balanced

Median prices represent properties priced above respective city benchmark prices.


– LUXURY MONTHLY MARKET REVIEW – SINGLE-FAMILY HOMES State Market Name

Median List Price

Median Sold Price

Inventory

New Listings

Sold

Days on Market

Market Status

NV

Las Vegas

$729,000

$635,000

1,665

484

259

35

Balanced

NY

Brooklyn

$1,544,000

$1,550,000

278

58

29

85

Buyer's

NY

Staten Island

$1,250,000

$1,148,000

187

47

12

131

Buyer's

ON

GTA - York

$2,186,495

$1,830,000

906

352

53

29

Buyer's

ON

Toronto

$3,398,888

$3,075,000

575

295

82

14

Buyer's

TN

Nashville

$999,000

$979,450

411

142

88

22

Seller's

TX

Austin

$999,900

$800,000

729

173

173

46

Seller's

TX

Collin County

$693,995

$679,402

958

205

134

73

Buyer's

TX

Dallas

$999,999

$872,000

880

235

121

37

Buyer's

TX

Fort Worth

$885,000

$750,000

812

175

107

48

Buyer's

TX

Houston

$822,250

$750,000

1,928

490

253

39

Buyer's

TX

The Woodlands & Spring

$750,000

$654,355

497

105

50

71

Buyer's

UT

Park City

$2,950,000

$2,105,250

263

36

30

135

Buyer's

VA

Arlington & Alexandria

$1,897,000

$2,150,000

100

32

6

25

Buyer's

VA

Fairfax County

$1,676,500

$1,541,395

566

136

50

90

Buyer's

VA

McLean & Vienna

$1,850,000

$2,110,000

267

61

17

109

Buyer's

WA

Seattle

$1,745,000

$1,438,888

261

110

97

9

Seller's

Median prices represent properties priced above respective city benchmark prices.


– LUXURY MONTHLY MARKET REVIEW – ATTACHED HOMES State Market Name

Median List Price

Median Sold Price

Inventory

New Listings

Sold

Days on Market

Market Status

AB

Calgary

$819,000

$787,500

335

86

22

53

Buyer's

AZ

Paradise Valley

-

-

-

-

-

-

-

AZ

Phoenix

-

-

-

-

-

-

-

AZ

Scottsdale

$655,000

$624,500

137

44

22

73

Balanced

AZ

Tucson

-

-

-

-

-

-

-

BC

Okanagan Valley

-

-

-

-

-

-

-

BC

Vancouver

$1,950,000

$1,738,000

800

294

47

21

Buyer's

BC

Victoria

$829,450

$775,000

210

75

48

31

Seller's

CA

Los Angeles Beach Cities

$1,599,000

$1,299,000

234

106

47

17

Balanced

CA

Los Angeles City

$1,564,500

$1,281,500

386

136

78

22

Balanced

CA

Los Angeles The Valley

$717,000

$662,500

130

55

42

28

Seller's

CA

Marin County

$1,185,000

$1,050,000

9

1

10

35

Seller's

CA

Napa County

-

-

-

-

-

-

-

CA

Orange County

$999,000

$916,500

503

154

114

22

Seller's

CA

Palm Springs & Palm Desert

-

-

-

-

-

-

-

CA

Placer County

-

-

-

-

-

-

-

CA

Sacramento

-

-

-

-

-

-

-

CA

San Diego

$1,007,500

$867,500

624

228

134

29

Seller's

CA

San Francisco

$2,847,500

$2,297,500

144

40

38

16

Seller's

CA

Santa Barbara

$1,615,000

$1,625,000

46

14

5

217

Buyer's

CA

Silicon Valley

$1,499,309

$1,430,000

86

51

89

9

Seller's

CO

Boulder

$880,000

$770,000

77

30

15

67

Balanced

Markets with dashes do not have a significant luxury market for this report. Median prices represent properties priced above respective city benchmark prices.


– LUXURY MONTHLY MARKET REVIEW – ATTACHED HOMES State Market Name

Median List Price

Median Sold Price

Inventory

New Listings

Sold

Days on Market

Market Status

CO

Denver

$699,000

$649,500

585

187

130

23

Seller's

CO

Douglas County

$663,340

$550,000

27

12

4

19

Buyer's

CO

Vail

$3,643,000

$3,387,500

80

3

4

86

Buyer's

DC

Washington D.C.

$1,662,500

$1,581,250

172

60

26

27

Balanced

FL

Boca Raton & Delray Beach

$817,000

$779,500

386

86

34

92

Buyer's

FL

Greater Fort Lauderdale

$882,000

$892,500

1,239

246

68

123

Buyer's

FL

Jacksonville Beaches

$1,400,000

$1,200,000

65

19

3

55

Buyer's

FL

Miami

$989,000

$800,000

3,068

439

61

134

Buyer's

FL

Naples

$2,125,000

$1,900,000

323

58

23

74

Buyer's

FL

Orlando

$755,750

$691,500

80

17

8

66

Buyer's

FL

Palm Beach Towns

$1,295,000

$1,111,500

329

67

20

117

Buyer's

FL

Sarasota & Beaches

$1,349,900

$1,425,000

233

48

7

124

Buyer's

GA

Atlanta

$660,853

$602,500

562

164

74

51

Buyer's

HI

Kauai

$1,406,000

$1,207,500

206

33

22

47

Buyer's

HI

Maui

$1,712,500

$1,780,000

134

27

11

168

Buyer's

IL

Chicago

$1,160,000

$1,162,500

937

244

110

68

Buyer's

MA

Greater Boston

$2,379,820

$2,075,000

259

75

39

32

Balanced

MD

Montgomery County

$772,450

$710,000

176

60

30

36

Balanced

MI

Oakland County

$787,000

$592,983

64

12

8

27

Buyer's

MO

St. Louis

-

-

-

-

-

-

-

NC

Charlotte

$722,948

$650,000

150

22

15

26

Buyer's

NC

Raleigh-Durham

-

-

-

-

-

-

-

Markets with dashes do not have a significant luxury market for this report. Median prices represent properties priced above respective city benchmark prices.


– LUXURY MONTHLY MARKET REVIEW – ATTACHED HOMES State Market Name

Median List Price

Median Sold Price

Inventory

New Listings

Sold

Days on Market

Market Status

NV

Las Vegas

-

-

-

-

-

-

-

NY

Brooklyn

$1,299,000

$1,070,000

645

156

53

50

Buyer's

NY

Staten Island

-

-

-

-

-

-

-

ON

GTA - York

$769,000

$735,000

185

94

33

26

Balanced

ON

Toronto

$1,248,400

$1,150,000

478

340

133

16

Seller's

TN

Nashville

$724,900

$640,000

118

33

18

22

Balanced

TX

Austin

$792,000

$662,540

220

48

25

35

Buyer's

TX

Collin County

-

-

-

-

-

-

-

TX

Dallas

$699,000

$672,000

206

47

14

55

Buyer's

TX

Fort Worth

-

-

-

-

-

-

-

TX

Houston

$629,000

$612,450

235

59

26

38

Buyer's

TX

The Woodlands & Spring

-

-

-

-

-

-

-

UT

Park City

$1,895,000

$1,692,500

159

20

20

150

Buyer's

VA

Arlington & Alexandria

$1,049,000

$966,000

109

36

14

47

Buyer's

VA

Fairfax County

$714,500

$719,250

161

60

50

46

Seller's

VA

McLean & Vienna

$985,125

$883,650

27

14

4

149

Buyer's

WA

Seattle

$1,150,000

$980,000

148

66

30

20

Balanced


Luxury is in each detail. Hubert de Givenchy



HOUSTON

SINGLE - FAMILY HOMES

LUXURY INVENTORY VS. SALES | OCTOBER 2018 Inventory

Sales

Luxury Benchmark Price 1: $500,000 $4,000,000+ $3,500,000 - $3,999,999 $3,000,000 - $3,499,999 $2,500,000 - $2,999,999

32

0

$1,500,000 - $1,749,999

Total Sales: 253

10 65

5

95

9

158

25 138

22

$550,000 - $599,999 $500,000 - $549,999

388

47

$700,000 - $749,999

$600,000 - $649,999

Total Sales Ratio2: 13%

92

$750,000 - $999,999

$650,000 - $699,999

Buyer's Market

41

5

$1,250,000 - $1,499,999

$1,000,000 - $1,249,999

Total Inventory: 1,928

21

1

$2,000,000 - $2,499,999 $1,750,000 - $1,999,999

58

3

97

26

168

17 157

19

213

29

205

35

Square Feet3

Price

Beds

Baths

Sold

Inventory

Sales Ratio

-Range-

-Median Sold-

-Median Sold-

-Median Sold-

-Total-

-Total-

-Sold/Inventory-

0 - 2,499

$586,000

3

3

64

298

21%

2,500 - 3,499

$727,000

4

4

89

643

14%

3,500 - 4,499

$955,900

4

4

59

460

13%

4,500 - 5,499

$1,375,000

4

5

19

261

7%

5,500 - 6,499

$2,387,220

5

6

14

119

12%

6,500+

$2,497,500

5

7

6

135

4%

The luxury threshold price is set in July of each year by The Institute for Luxury Home Marketing. 2Sales Ratio defines market speed and market type: Buyer's = up to 14%; Balanced = 15 to 20%; Seller's = 21% plus. If >100% MLS® data reported previous month’s sales exceeded current inventory. 1


HOUSTON

SINGLE - FAMILY HOMES

13 - MONTH LUXURY MARKET TREND 4 Median Sales Price

$732,919

$720,313

$702,500

1,654

1,518

235 Oct-17

1,618

1,485

279

220

Nov-17

$680,000

Dec-17

Jan-18

189

$735,000

2,067

1,876

1,777

Feb-18

$750,000

$720,000

$715,000

1,613

127

Inventory

Mar-18

$735,000

Apr-18

May-18

$750,000

2,100

2,019

412

349

309

261

Solds

Jun-18

$730,000

2,016

2,012

315

312 Jul-18

$750,000

$713,000

Aug-18

1,928

253

225 Sep-18

Oct-18

MEDIAN DATA INVENTORY September

October

2,016

1,928 VARIANCE: -4 %

SALE PRICE PER SQFT. September

October

263

$

270 VARIANCE: 3 % $

SOLDS September

October

225

253 VARIANCE: 12 %

SALE TO LIST PRICE RATIO September

October

96.86% 97.23% VARIANCE: 0 %

SALES PRICE September

713k

$

October

750k VARIANCE: 5 % $

DAYS ON MARKET September

October

69

39 VARIANCE: -43 %

HOUSTON MARKET SUMMARY | OCTOBER 2018 • The Houston single-family luxury market is a Buyer's Market with a 13% Sales Ratio. • Homes sold for a median of 97.23% of list price in October 2018. • The most active price band is $700,000-$749,999, where the sales ratio is 27%. • The median luxury sales price for single-family homes has increased to $750,000. • The median days on market for October 2018 was 39 days, down from 69 in September 2018.

Square foot table does not account for listings and solds where square foot data is not disclosed. 4 Historical data before August 2017 does not account for listings taken off the market.

3


HOUSTON

ATTACHED HOMES

LUXURY INVENTORY VS. SALES | OCTOBER 2018 Inventory

Sales

Luxury Benchmark Price 1: $500,000 $1,400,000+ $1,300,000 - $1,399,999 $1,200,000 - $1,299,999 $1,100,000 - $1,199,999

$1,000,000 - $1,099,999 $950,000 - $999,999 $900,000 - $949,999 $850,000 - $899,999

$800,000 - $849,999 $750,000 - $799,999

0

1

Total Inventory: 235 7

0

Buyer's Market Total Sales Ratio2: 11%

3

0

5

0

4

0

7

0

11

1

17

2

18

3

$650,000 - $699,999

21

3

26

2

$550,000 - $599,999 $500,000 - $549,999

Total Sales: 26

4

0

$700,000 - $749,999

$600,000 - $649,999

7

2

45

7

59

6

Square Feet3

Price

Beds

Baths

Sold

Inventory

Sales Ratio

-Range-

-Median Sold-

-Median Sold-

-Median Sold-

-Total-

-Total-

-Sold/Inventory-

0 - 2,499

$586,000

3

3

2

42

5%

2,500 - 2,999

$569,000

3

4

12

68

18%

3,000 - 3,499

$614,950

3

4

6

70

9%

3,500 - 3,999

$725,000

3

5

3

29

10%

4,000 - 4,499

$1,206,500

4

5

2

16

13%

4,500+

$1,695,000

3

4

1

10

10%

The luxury threshold price is set in July of each year by The Institute for Luxury Home Marketing. 2Sales Ratio defines market speed and market type: Buyer's = up to 14%; Balanced = 15 to 20%; Seller's = 21% plus. If >100% MLS® data reported previous month’s sales exceeded current inventory. 1


HOUSTON

ATTACHED HOMES

13 - MONTH LUXURY MARKET TREND 4 Sale Price

$666,500

$638,756

221

196

22

Oct-17

$620,000

$600,000

201

204

19

20

Nov-17

Dec-17

$645,000

Jan-18

$672,750

212

189

13

Inventory

Solds

$619,250

$632,000

$624,900

217

230

235

17

28

34

32

Feb-18

Mar-18

Apr-18

May-18

$665,000 $595,000

31 Jun-18

31 Jul-18

$612,450

263

253

251

$616,500

235

17

13

Aug-18

Sep-18

26

Oct-18

MEDIAN DATA INVENTORY September

October

263

SOLDS September

October

235 VARIANCE: -11 %

26 VARIANCE: 100 %

SALE PRICE PER SQFT.

SALE TO LIST PRICE RATIO

September

October

210

$

208 VARIANCE: -1 % $

13

September

October

97.81% 96.76% VARIANCE: -1 %

SALES PRICE September

617k

October

612k VARIANCE: -1 %

$

$

DAYS ON MARKET September

October

47

38 VARIANCE: -19 %

HOUSTON MARKET SUMMARY | OCTOBER 2018 • The Houston attached luxury market is a Buyer's Market with an 11% Sales Ratio. • Homes sold for a median of 96.76% of list price in October 2018. • The most active price band is $1,400,000+, where the sales ratio is 29%. • The median luxury sales price for attached homes has decreased to $612,450. • The median days on market for October 2018 was 38 days, down from 47 in September 2018.

Square foot table does not account for listings and solds where square foot data is not disclosed. 4 Historical data before August 2017 does not account for listings taken off the market.

3


Thank you for viewing this report. Please contact me for more information about this report and the services I can offer to you and your luxury property. Please contact me at 832.895.9077.

- Janet Sher

JANET SHER

832.895.9077 | Janet.Sher@GaryGreene.com | www.SHERJanetsRealEstate.com


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