"There is little volatility in the stock market. It is whoppingly higher, so people in the top 10 percent of wealth are really feeling confident now," said Lawrence Yun, chief economist for NAR.
Sales of existing homes priced above $1 million jumped more than 16% in October from a year ago, according to a NAR report. That's higher than any other price segment. The next strongest was the $750,000-$1 million range, up more than 12%, and the lowest was sales of homes priced under $100,000, which declined 6%.
The median existing-home price for all housing types in October was $208,300, which is 5.5% above the same time last year. Luxury homes make up just 2.2% of the housing maret. Lower-end, distressed homes had previously made up the bulk of sales during the last two years, but now fewer of those on the market. Approximately 9% of sales last month were either foreclosures or short sales.
Sales in the $1 million–plus range are now approaching levels comparable to the housing boom peak in 2007, according to CoreLogic. According to a Washington Post
article, many people are finding out by accident that they can often get a better rate on a $700,000 mortgage than a $400,000 mortgage.
Homes priced $1 million or higher rose in October, as did the U.S. stock market, and the correlation is not lost to the National Association of Realtors (NAR).