According to CNBC, there has been a supply shortage of luxury homes in the US for the past two years. There was a 4.9 percent increase in values of the top 5 percent of homes sold in the third quarter of the year, according to Redfin, that stated the average of these homes was $1.71 million.
Nela Richardson, chief economist of Redfin, is quoted “There is still strong buyer demand for high-end homes. Despite declining inventory, luxury sales soared in the third quarter.” Million dollar listing sales were up 11 percent from last year, while homes priced at or above $5 million rose up to almost 10 percent, says Richardson.
Where has this surge in luxury demand come from? Possible sources are the success of the US stock market all year, as well as demand from foreign buyers who favor the luxury real estate market.
Average luxury home prices in the US are p 34.7 percent in Longmont, Colorado, 28.7 percent in Ft. Lauderdale, Florida, and 19.6 percent in St. Petersburg, Florida.