According to a report recently released by Realtors, sales of million-dollar homes jumped to a whooping 16 percent in October from a year ago.
The sales of existing homes priced more than $1 million had a huge increase surpassing every other homes from different price segment. This is followed by homes priced from $750,000 to $1 million, which increased 12 percent. As for homes priced below $100,00, their sales dropped 6 percent.
The median price of U.S. homes old last October was $208,300, which was made as the reference point. Luxury homes accounted for 2.2 percent of the housing market. Although distressed, lower-end properties comprised the largest share in the housing market sales over the past two years, their number, either foreclosure or short sales, has dropped to just 9 percent in October.
Miami, Los Angeles, Riverside, California and New York were some of the major markets that have seen a growth in the sales of their luxurious properties. Homebuyers from China, Canada, Europe, Russia as well as South America bought most of these properties.
Based on a report released by Redfin, a real estate brokerage, the sales of homes priced more than $5 million increased 18 percent in this year’s third quarter.
“But I think the bull market is about to run its course,” said Redfin’s Chief Economist Nela Richardson. “If you look at the markets where there has been a lot of international investor activity, you’ll see that the participation has actually dropped quite a bit.”
This could possibly indicate as to where the luxury market is heading next year.
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