Housing
The Luxury Home Market: Where Its Hot and Where Its Not
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The market for luxury homes in the United States is expanding and so is its footprint. As demand for million-dollar homes rises and availability of these homes in their traditional neighborhoods declines, high-priced homes are being built in new locations and neighborhoods.
Researchers at Realtor.com have noted that prices in some of America’s most prestigious Zip codes have stagnated or declined following years of overbuilding or because there is simply no more land available on which to construct new luxury homes. Foreign buyers, who have long been top purchasers of luxury homes, are also getting scarcer.
The researchers also point out that the market for luxury homes also affects the rest of us because rising prices for expensive properties lift prices for all homes.
To find out where the market for luxury homes is hot — and where it’s not — Realtor.com looked at more than 600 U.S. Zip codes where median home prices were above $1 million between April 2016 and April 2017 and compared these areas to prior year data to see which experienced the largest increases and decreases in median prices. The researchers eliminated Zip codes with fewer than 10 listings per month and limited the number of Zip codes per state to two.
Here are the 10 hottest housing markets for luxury homes along with their median list price and the year-over-year percentage increase in median home prices.
1. Santa Monica, California
> Median listing price: $3.05 million
> One-year increase in median price: 60.7%
2. West Newton, Massachusetts
> Median listing price: $2.22 million
> One-year increase in median price: 60.4%
3. Palo Alto, California
> Median listing price: $5.6 million
> One-year increase in median price: 59.1%
4. Kattskill Bay, New York
> Median listing price: $2.37 million
> One-year increase in median price: 42.7%
5. Seattle, Washington
> Median listing price: $1.48 million
> One-year increase in median price: 42.1%
6. Bellevue, Washington
> Median listing price: $1.48 million
> One-year increase in median price: 41.5%
7. New York City (Lower East Side of Manhattan)
> Median listing price: $1.81 million
> One-year increase in median price: 39%
8. Aspen, Colorado
> Median listing price: $2.26 million
> One-year increase in median price: 32.3%
9. Kilauea, Hawaii
> Median listing price: $2.49 million
> One-year increase in median price: 31.5%
10. North Chatham, Massachusetts
> Median listing price: $1.59 million
> One-year increase in median price: 30.9%
Here are the 10 luxury home markets by Zip code that have cooled off the most.
- New York City (10004)
- Laie, Hawaii (96762)
- Denver, Colorado (80246)
- Bedford Hills, New York (10507)
- Paia, Hawaii (96779)
- Somerset, Colorado (81434)
- Beverly Hills, California (90211)
- Arlington, Virginia (22213)
- Delaplane, Virginia (20144)
- Santa Barbara, California (93103)
For more details visit the Realtor.com website.
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