The real estate market remains red-hot. Zillow estimates that homes sold more quickly in 2017 than ever before, and 2018 seems to me to be on pace to beat 2017.
However, one segment of the real estate market seems to be lagging. I’m talking about luxury homes. Prices at the top 5% of the real estate market increased just 5.1% in 2017, almost 2% lower than the rest of the market.
What's going on?
Affordability does not seem to be an issue. More Americans can afford a top-level home than ever before. Instead, it might come down to one simple factor: There is simply a greater supply of luxury homes compared to other types of homes.
In fact, 53% of the available housing inventory is in the premium segment (compared to 23% for starter homes and 24% for trade-up homes). In other words, demand and supply are more evenly matched at the top of the market, while in other segments, demand far outstrips supply.
What does this mean for you?
If you've been thinking about trading up to a luxury home, now might be the perfect time to do so. The red-hot demand for starter and trade-up homes means you could sell your home for top dollar and at record speed. And the limited price growth and greater inventory at the luxury end means you could have your pick, and find a special, unique, and customized home that perfectly suits your preferences.
If this sound appealing to you, you can get started by letting us give your home an accurate valuation. You can also view all the latest luxury homes in Southern Oregon on our website.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.