There was a dip in demand for luxury homes in 2017 as the overall US housing market outperformed the top end.
The threshold for luxury home prices (top 5% of transactions by sales price) rose 5.1% while the overall housing market saw a 6.9% gain in prices.
Supply of luxury homes increased to 7% of the homes available with a rise in million dollar listings of 3.9% year-over-year.
Realtor.com reports that the three hottest markets in the luxury sector were Hawaii, Colorado and California, each with double-digit price gains.
"Age of inventory in the top 5% of the market slowed significantly over last year - a tell tale sign that the supply in the luxury sector continues to outpace demand,” said Javier Vivas, director of economic research for realtor.com®. “Much of this slowing can be attributed to a wider selection of luxury homes for buyers and increased uncertainty over the last 12 months."
| Metric |
Luxury Tier (Top 5%) |
U.S. Housing Market |
| Median Sales Price |
$804,000 |
$235,000 |
| Median Sales Price Growth Year-Over-Year |
5.14% |
6.90% |
| Median List Price |
$1,307,000 |
$266,000 |
| Days on Market |
116 days |
71 days |
| Days on Market Change Year-Over-Year |
5.35% |
-7.33% |
The most expensive luxury market was New York with an average sales price of $5,284,200; followed by San Mateo ($3,370,700) and Marin, Calif. ($3,288,800).