exist Inman Connect Las Vegas, July 30-August. On January 1, 2024, the noise and misinformation will be cut away, all your big questions will be answered, and new business opportunities will be revealed. join us.
The luxury market has fueled a surge in home prices during the pandemic, as homebuyers seek larger mansions so they can shelter in place while taking advantage of historically low mortgage rates.
According to Realtor.com, the median home price in the general market has increased by approximately 35% over the past four years, while luxury home prices have increased by nearly 50% during this period.
Home prices have more than doubled in warm-weather hotspots where buyers have flocked to during the pandemic, such as Reno, Nevada; West Palm Beach, Florida; and Lake Havasu City, Arizona.
However, some luxury markets, especially those in densely populated and expensive coastal cities, saw little price growth as residents fled these places once the option to work remotely became available. Others have been forced to leave due to unemployment and need to find more affordable living conditions.
One such luxury market is Washington, D.C., where luxury homes are now about 1% cheaper than they were in 2020, according to Realtor.com.
The real estate portal and data company identified 10 U.S. markets where luxury home prices have increased the least since the start of the pandemic, so it’s possible to find bargains in those markets now. Luxury home prices were ranked in the most expensive 5% of all listings on the market, and luxury home prices in April 2020 and April 2024 were compared.
Hannah Jones, senior economic analyst at Realtor.com, said that given that home prices in several of these cities were already high before the pandemic, there is little room for home prices to rise, especially given the economic environment at the time.
“In places like Seattle, luxury home prices in particular — but overall home prices — have stabilized somewhat during the pandemic because people are moving out of these big coastal cities,” Jones said. “So they’re not seeing the same pandemic prices. The rise makes sense.”
Image source: Realtor.com
However, densely populated coastal cities aren’t the only ones where luxury prices have remained relatively stable since the outbreak began—several small and mid-sized cities in the Midwest, such as Toledo, Ohio, and Oklahoma, have also seen relatively stable prices. Tulsa, MA.
“These places haven’t seen the same pandemic-driven price increases,” Jones said. “So it makes sense that they haven’t seen the same increases in luxury prices that they’ve seen over four years.”
Slow luxury price growth in some markets may also be due to individuals seeking affordability across metro markets rather than luxury markets. For example, many San Francisco residents have flocked to Stockton, Calif., over the past few years, but they have sought non-luxury properties in the new city, causing the overall market’s median home price to rise nearly 60% while luxury prices have only risen 19%. %.
“People are moving out of areas typically looking for affordability in California, but they’re not looking for luxury housing there,” Jones said.
Here are the 10 cities with the most stable luxury home prices since April 2020, as identified by Realtor.com, with just one city per state with the lowest luxury home price growth to ensure geographic diversity.
Listed property at 2918 P Street, NW in the Georgetown neighborhood of Washington, D.C., for $2.99 million | Realtor Network
Washington DC
Most expensive 5% of listings as of April 2020: $2,995,900+
Most expensive 5% of listings as of April 2024: $2,972,500+
Increase: -1%
Number of listings selling for more than $2,972,500 in April 2024: 115
2442 Wellstone Road, Toledo, Ohio coming soon for $379,900 | Realtor Network
Toledo, Ohio
Most expensive 5% of listings as of April 2020: $324,670+
Most expensive 5% of listings as of April 2024: $335,700+
Increase: 3%
Number of homes listed for sale over $335,700 in April 2024: 18
3751 Coral Garden Lane, Winston-Salem, NC Listed for $1.6 Million | Realtor Network
Winston-Salem, North Carolina
Most expensive 5% of listings as of April 2020: $938,888+
Most expensive 5% of listings as of April 2024: $998,450+
Increase: 6%
Number of listings selling for more than $998,450 in April 2024: 24
Home for sale at 2024 South Wells Street, Wichita, KS $975,000 | Realtor Network
Wichita, Kansas
Most expensive 5% of listings as of April 2020: $765,000+
Most expensive 5% of listings as of April 2024: $895,858+
Increase: 17%
Number of listings selling over $895,858 in April 2024: 34
6233 McFarland Road in Stockton, California is listed for $2.249 million | Realtor Network
Stockton, California
Most expensive 5% of listings as of April 2020: $849,003+
Most expensive 5% of listings as of April 2024: $1,004,188+
Increase: 18%
April 2024 Number of Listings Valued Over $1,004,188: 18
5204 Sandstone Court in Suffolk, Virginia is listed for $785,000 | Realtor Network
Suffolk, Virginia
Most expensive 5% of listings as of April 2020: $632,765+
Most expensive 5% of listings as of April 2024: $749,900+
Increase: 19%
Number of homes listed for sale over $749,900 in April 2024: 21
A property at 5903 Quail Creek Drive in Tyler, Texas is listed for $1.25 million | Realtor Network
Tyler, Texas
Most expensive 5% of listings as of April 2020: $1,022,273+
Most expensive 5% of listings as of April 2024: $1,219,167+
Increase: 19%
Number of listings valued over $1,219,167 in April 2024: 31
A home at 105 East 26th Place in Tulsa, Oklahoma is listed for $1.295 million | Realtor Network
Tulsa, Oklahoma
Most expensive 5% of listings as of April 2020: $1,068,488+
Most expensive 5% of listings as of April 2024: $1,300,000+
Increase: 22%
Number of listings valued over $1,300,000 in April 2024: 47
A new construction home on Buck Lake Road in Tallahassee, Florida is listed for $845,000 | Realtor Network
Tallahassee, Florida
Most expensive 5% of listings as of April 2020: $669,443+
Most expensive 5% of listings as of April 2024: $814,638+
Increase: 22%
Number of listings selling for more than $814,638 in April 2024: 54
A new construction home located at 7922 1/2 Seward Avenue South in Seattle, WA is listed for $3.399 million | Realtor Network
Seattle, Washington
Most expensive 5% of listings as of April 2020: $2,350,000+
Most expensive 5% of listings as of April 2024: $2,912,450+
Increase: 24%
Number of listings valued over $2,912,450 in April 2024: 81
Get Inman’s Luxury Lenses Newsletter Delivered directly to your inbox. Every Friday is an in-depth look at the biggest news in high-end real estate. Click here to subscribe.
Email Lillian Dixon
