When it comes to real estate, most people know that location is key. Market conditions can differ from one neighborhood to the next. But location isn’t the only thing affecting the conditions you’ll encounter when shopping for a house to buy. Your price range will also have something to do with it. For example, the National Association of Realtors’ consumer website recently released its 2018 Luxury Home Index and the results show luxury home buyers face a far different market than buyers who are looking for a more affordable home. That’s because, while overall home price increases are showing signs of slowing down, in the luxury market they’re gaining speed. In fact, according to the index, there are a rising number of areas with double-digit price growth from the same time last year. In Sarasota, the nation’s fastest-growing luxury market, prices are up 21 percent from last year. Another difference between the overall market and the top 5 percent of all residential sales is the fact that luxury homes stay on the market longer. Luxury homes in the 90 counties analyzed were on the market a median of 121 days. More here.
Are Waterfront Homes Selling For Less?
There are two reasons home buyers typically have to pay more for a house on the water. The first is that people want to live on the water. It’s a desirable location. Secondly, there are a limited number of houses with water access. And when you combine high demand and low supply, you usually have a recipe for higher prices. But new research shows that waterfront property isn’t selling at as high a premium this year. In fact, waterfront homes in the first quarter sold for a 36 percent premium, which is the lowest level since 2002. By comparison, the average premium since 1996 is 41 percent and in 2012 the premium was as high as 54 percent. In other words, the difference in price between homes on the water and those further inland is lower than normal. But since having an ocean or lake view hasn’t become any less desirable, what might be behind this trend? Well one explanation is that a lower overall number of homes for sale has helped raise prices for homes all over, which has narrowed the price gap between waterfront and inland homes. More here.