In March 2023, Redfin shared some intriguing data. The top 5% of sales (price wise), had taken a 45% tumble year over year. However, the data, which was collected over three months, also showed that the ultra-luxury market across the U.S. appreciated 9% in that same time. The media headlines focused on the 45% drop though (see below).
So, what’s the deal? If prices are on the up, why the fuss over a sales drop?
We’ve sifted through the Redfin data and the media coverage. We’ve made some deductions. And we’re here to share them with you.
The post-pandemic market was a unique time in history. Now, we’re seeing a shift back to more familiar territory.
These factors have stirred the pot, creating unique opportunities. Lower competition and lower interest rates for jumbo loans could be a win for luxury buyers.
Local market conditions are key. As an example, we recently pointed out 26 Notable Closing In Paradise Valley
Real estate is complex and ever-changing. Despite a HUGE dip in sales, per the media and Redfin, the U.S. luxury market appreciated 9%. And while their headlines hyped the 45% drop, they had no choice but to include the 9% rise in home prices year over year. And while we’re not here to beat the media up too much, we are here to show you how they tell the story THEY want to tell. Yes, we care about trends. Yes, we aim to save our clients money.
Due to the reasons above, we think the fact luxury homes cost more today than when the 2022 correction began is important to report. We’ll continue to keep a close eye on the trends and bring you the most relevant updates. Stay tuned to our LUXE BLOG for more. WLH out.