While many Americans are waiting for the government to reinstate $600 a week in unemployment benefits, a Miami home has sold for $19 million to win the third quarter title.
Miami luxury sales are not unique, in the third quarter of this year, the United States luxury housing market as a whole volume of the characteristics of rising prices.In the United States, luxury homes are typically defined as the top 5 percent of homes sold over a period of time.Luxury sales in metropolitan areas outside New York City rose 41.5 percent in July-September from a year earlier, the biggest increase in at least seven years, according to real-estate brokerage RedFin. The median price rose 6.5 percent to $863,000, the supply of homes was ample and new listings rose 44.9 percent from a year earlier.Luxury homes sell well and buy quickly, with the average $860, 000 home coming on the market in an average of 58 days.
By region, sales of luxury homes in Sacramento, Calif., surged nearly 90 percent from a year earlier, while sales of luxury homes in West Palm Beach, Fla., were also strong, rising about 60 percent.
Why can the luxury property market buck the trend when the economy is in a downturn?Daryl Fairweather, chief economist at RedFin, the US real estate agency, told China Business News that telecommuting, ultra-low mortgage rates and a strong stock market rally during the outbreak had all prompted wealthy us families to buy or swap homes.
“The epidemic has changed relationships and people’s need for a place to live has changed, and people are making decisions to move in search of more space, and it’s people who are financially comfortable who are able to buy and sell property.”Fairweather says people who can work remotely and earn a good salary during the epidemic are likely to be slightly affected by the outbreak and invest in the stock market.Those less affluent, who may be in essential jobs or have lost their jobs, are reluctant to sell and move in turbulent times, which explains the divergence between the high-end and low-end housing markets in the third quarter.
According to RedFin, both sales and inventory in the low-end residential market fell between July and September, with sales of affordable homes with a median home price of $178,000 down 4.2% from a year earlier. Inventory fell 7.6% from a year earlier, and sales of the most affordable homes with a median home price of $90,000 fell 4.8%.
Fairweather also said that in addition to having a good income and flexible working location, luxury buyers are also concentrated in the technology and financial industries.
The report about the 50 metropolitan areas, but does not include New York City, fairweather explains, because New York mansion mostly belongs to the otc (Off – market deals), due to the on line resource scarcity, who usually are priced at $20 million or more expensive housing, only in a small group of close secret deals between real estate broker, and will not be put into public sale on the market.
So how has New York City’s luxury market fared in the epidemic?CBN’s reporter, led by real estate agent James Ferrando, visited a mansion on New York’s Upper East Side.The upper East Side, a famously wealthy section of Manhattan adjacent to Central Park where Jackie Kennedy, the former US President, grew up, is home to industrialist John D. Rockefeller and financier and Blackstone Co-founder Steve Schwarzman.
The 6,111-square-foot apartment at 737 Garden Road, or about 670 square meters, has a private elevator, five bedrooms and 7.5 bathrooms.The property, which the owner bought for $20.5 million in 2017, has been listed for more than two months at $18 million, or about 130 million yuan, down $2.5 million from when it was bought.
Over the past four weeks, he said, he has been showing on average two or three groups of prospective buyers a week, and he acknowledged that unlike in other metropolitan areas across the country, the epidemic has hit luxury home sales in New York City hard.”When the epidemic hit the United States in March, New York City saw a decline in residential sales, fewer buyers, a decline in signings and a rise in inventories, and now New York City is a buyer’s market.”Asked why New York was so different from other regions, he said that in high-priced cities such as New York and San Francisco, people were choosing to sell expensive apartments and trade in bigger houses in the suburbs or even in underpriced cities.During the epidemic, for example, many New Yorkers moved from downtown to Hampton, New York, or Greenwich, Connecticut, in search of more living space or outdoor space.
In the third quarter of this year, 1,661 residential units traded in Manhattan, down 44% from a year earlier. Inventories stood at 9,560 units, the highest level since the second quarter of 2009. The median home price was $1.08 million, up 8% from a year earlier, and the average sales cycle was 154 days, up 36%.However, compared with the second quarter, trading activity has picked up sharply, with the number of contracts signed in the third quarter rising 1.7 times month-on-month, and median house prices rising 8 per cent month-on-month.
Looking ahead to the U.S. luxury housing market, RedFin chief economist Phil Fairweather expects current trends to remain unchanged.As the epidemic continues, more people will need to change their homes. So I don’t think the luxury market has peaked yet.”
Reprint indicated source：Shine Trader Limited Live information