Here’s the luxury housing market update from realtor.com. The latest numbers tell a positive story according to Javier Vivas, realtor.com’s director of research. “I was surprised when I saw the data telling us luxury buyers are back in full force.” As stock market volatility continues Vivas, sees this as a market driver. “People have less confidence right now in the stock market. Luxury buyers are seeing value in buying a second home as an investment and a getaway.”
In May, according to realtor.com the luxury sector led the housing market in median price growth. It was up 1.6 percent from May 2019. In May when much of the country was under stay-at-home orders online searching for million-dollar-plus homes was 7.3 percent higher than last May. That was after a 9.5 percent decline year-over-year in April.
As hard hit as the Manhattan luxury market is right now, counties outside of the city especially on Long Island saw lots of online views in May. Realtor.com looked at year-over-year increases for views per property on million dollar and up homes.
Topping the list was Suffolk County home to the in-demand Hamptons which saw a 72 percent increase. The luxury listing price was also up 8.2 percent year-over-year. Here’s how far your dollars go in The Hamptons right now. There’s a “farmhouse” in East Hampton near Amagansett Village for under a million listed at $995,000.
Lots of increased activity from last May also along the Jersey Shore in Ocean County. Views increased by 18 percent while luxury listing prices increased 25 percent to $1,750,000.
Another area with strong luxury second home activity is Palm Springs with a 28 percent increase in views since January. “We are exceptionally busy in the luxury market right now. There are more and more buyers from Los Angeles and Orange County,” observes Valery Neuman, founding partner of Compass’ Greater Palm Springs office. “They are looking to get in their car and drive to a sanctuary with their families.” A 3,000 square foot bungalow with mountain and fairway views at the prestigious Hideaway Golf Club in La Quinta is listed at $1,275,000.
Conversely resort destinations including Honolulu, Key West, Pebble Beach, and several Colorado ski towns have declining online views.
Given all the online interest what does the landscape look like for buyers? “Expect more competition than usual. Sellers currently have more confidence in pricing than usual due to increased demand,” said Vivas. That tracks with luxury market inventory numbers.
Vivas’ takeaway for buyers, “This appears to be the window for luxury buyers to move on a second home.”