Luxury Market Report North America
Guide to luxury real estate market data and trends for North America.
Produced with data from The Institute for Luxury Home Marketing which Barry is a member of, with the accredited CLHMS Certification.
The Luxury Market Report is a monthly analysis provided by The Institute.
Welcome to the Luxury Market Report, your guide to luxury real estate market data and trends for North America. Produced monthly by The Institute for Luxury Home Marketing, this report provides an in-depth look at the top residential markets across the United States and Canada. Within the individual markets, you will find established luxury benchmark prices and detailed survey of luxury active and sold properties designed to showcase current market status and recent trends. The national report illustrates a compilation of the top North American markets to review overall standards and trends.
The Institute for Luxury Home Marketing has analyzed a number of metrics — including sales prices, sales volumes, number of sales, sales-price-to-list-price ratios, days on market and price-per-square-foot – to provide you a comprehensive North American Luxury Market report.
Additionally, the institute have further examined all of the individual luxury markets to provide both an overview and an in-depth analysis - including, where data is sufficient, a breakdown by luxury single-family homes and luxury attached homes.
It is the Institutes intention to include additional luxury markets on a continual basis. If your market is not featured, please contact us
More in-depth reports on the luxury communities in your market are available as well.
Looking through this report, you will notice three distinct market statuses, Buyer's Market, Seller's Market, and Balanced Market.
A Buyer's Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.
By contrast, a Seller's Market gives sellers greater control over the price point. Typically, this means there are few homes on the market and a generous demand, causing competition between buyers who ultimately drive sales prices higher.
A Balanced Market indicates that neither the buyers nor the sellers control the price point at which that property will sell and that there is neither a glut nor a lack of inventory. Typically, this type of market sees a stabilization of both the list and sold price, the length of time the property is on the market as well as the expectancy amongst homeowners in their respective communities – so long as their home is priced in accordance with the current market value.
REMAINING INVENTORY: The total number of homes available at the close of a month.
DAYS ON MARKET: Measures the number of days a home is available on the market before a purchase offer is accepted.
LUXURY BENCHMARK PRICE: The price point that marks the transition from traditional homes to luxury homes.
NEW LISTINGS: The number of homes that entered the market during the current month.
PRICE PER SQUARE FOOT: Measures the dollar amount of the home's price for an individual square foot.
SALES RATIO: Sales Ratio defines market speed and determines whether the market currently favors buyers or sellers. Buyer's Market = up to 14%; Balanced Market = 15 to 20%; Seller's Market = 21% plus. If >100%, sales from previous month exceed current inventory.
SP/LP RATIO: The Sales Price/List Price Ratio compares the value of the sold price to the value of the list price.
“Work/lifestyle balance may have been a trend that was cemented by the pandemic in 2020, but this initial trend has long been in the making as people recognized the need to de-stress their lives. As we move in 2021, there is an expectation that this will be one of the lasting trends and exurban, rural, and resort locations will be the beneficiaries. The pandemic is still fueling the uptick in numbers of new residents who are now ready to enjoy the perks of these lifestyles, especially given that they can work from home.”
There is no doubt that 2020 was the year of unpredictability, from dramatic stops and starts to multiple offers on properties that had sat on the market for years, as well as significant lifestyle changes in both work, home, and play.
As we look to the trends being predicted for 2021, many experts find themselves in a quandary as the pandemic is still a major factor, and its long term effects remain somewhat of an unknown entity.
Work/lifestyle balance may have been a trend that was cemented by the pandemic in 2020, but this initial trend has long been in the making as people recognized the need to de-stress their lives.
As we move in 2021, there is an expectation that this will be one of the lasting trends and exurban, rural, and resort locations will be the beneficiaries.
The pandemic is still fueling the uptick in numbers of new residents who are now ready to enjoy the perks of these lifestyles, especially given that they can work from home.
Equally it is expected that the affluent will continue to realign their priorities to spend more on real estate to provide their families a sense of security, health safety, and privacy.
For the wealthy this will mean that work, school, socializing, and entertainment will take place in their homes through much of 2021.
Prices for luxury properties have climbed steadily over the last few months in the majority of luxury markets across North America, even in major metropolitan cities.
Another recent surprise has been the uptick in the number of sales in the attached property market.
Much of this demand has stemmed from the growth of the wealthy, both in terms of financial and NORTH AMERICAN LUXURY REVIEW numbers, during 2020.
They have been responsible for an upsurge in property purchases in exurban and rural communities, as well as larger attached properties in metropolitan markets.
For those who did sell their city property, it is speculated that there will be a return of the pied-a-terre as they buy back into their metropolitan city.
These buyers are taking advantage of condo prices that did fall slightly and increased inventory levels that rose significantly during the last six to eight months of 2020.
Many experts believe that, if COVID starts to dissipate or becomes more controllable during 2021, there will be a return to the big city life, as some will miss the cultural and social aspects, and others will recognize that it is a necessary step to advance their careers or businesses.
Other experts believe that the demand for exclusive residential properties that offer larger footprints, provide more amenities such as private outdoor space, touchless technology, numerous home offices, and health perks including air and water filtration to natural and ambient lighting systems, will still be the driving force of luxury real estate in 2021. Stating that the trends of 2020 have created a complete shift in lifestyle choices that is unlikely to be reversed.
Factor in lower interest rates, low inventory levels, new wealth from sectors that benefitted from the pandemic, a millennial population that is ready to find a safe haven, and significant increase in second home buying as well as upsizing and new properties offering higher wellness standards, and you have the perfect storm for creating a continued strong buyer demand. The bigger question lies in whether current sales levels and price increases can be sustained indefinitely.
There is always a point at which prices do become too high and demand levels off, but for communities where inventory levels are at an all-time low, this trend may well continue far into 2021.
In fact, many luxury markets saw a significant decrease in inventory in January 2021.
Single family available properties are down over 30% from January 2020.
Just as the pandemic had an impact on the types of property in demand, so too has it affected the design trends for 2021.
2020 was a big year for the home décor market, both inside and out, especially for those homeowners who chose not to move, but instead invest in reimagining their lifestyle spaces.
Design trends for 2021 are predicted to take their cue from the collective pulse and include a range of choices based on necessity through to creating a personal refuge.
Working from home has made the importance of creating a dedicated office space the number one priority for many homeowners.
As a result, the idea of a home office has evolved from finding a quiet space in the house to creating a dedicated location which not only caters for a work area but work-related storage items too.
The affluent, often with multiple requirements, with both parents and children needing space, have looked to repurpose rooms within their homes.
There is also a clear focus that many are looking to reconfigure their spaces, so there is a distinct separation between work and family areas.
As the number of virtual meetings increased, so too has the desire to ensure that the environment showcased to other participants become more aesthetically pleasing.
Backdrops have been redesigned to show artwork, clean lines, carefully curated furnishings and finishing, and even new methods of lighting have been introduced to create softer more flattering images on the screen.
The trend for multi-functional open concept living has now been replaced with adapting the home to create more private and quieter spaces, as we now work, exercise and entertain within the home environment.
As guest bedrooms are no longer required, often these are being converted into offices, large recreational rooms are being sub-divided to include multiple workstations for home schooling and garage space repurposed to include personal gyms.
Given the amount of time now spent in the home, design trends have swung away from more formal spaces that were a showcase for entertainment to become more informal.
Softer furniture designs, more relaxed materials and textured finishings are being introduced to provide functionality and durability. Colors and tones incorporated to create calmer more welcoming spaces that invite long term stay.
One trend that has stayed the course, is the desire to bring the outdoors in and vice versa, so there is no distinction between the exterior and interior once the doors are open.
In the winter months, the need for natural light has seen an increase in demand for the implementation of larger windows, and the inclusion of sliding doors ready for the warmer summer months.
Large residential developers, particularly those with luxury condominium buildings that prior to pandemic were scheduled for release, have had to rethink their strategies for 2021.
The demand for wellness amenities, private and separate spaces, as well as touchless technology has meant a considerable adjustment to many plans.
However, the reward has been significant as the affluent are willing to invest in properties that prioritize their demand for health, safety and mental wellness.
A Review of Key Market Differences Year over Year
January 2020 | January 2021
Median List Price $1,595,000 $1,799,000
Median Sale Price $1,368,500 $1,350,000
Median SP/LP Ratio 96.75% 97.91%
Total Sales Ratio 13.42% 38.58%
Median Price per Sq. Ft. $372 $384
Total Inventory 40,508 24,721
New Listings 11,566 7,635
Total Sold 5,436 9,537
Median Days on Market 74 38
Average Home Size 3,771 3,551
SINGLE-FAMILY HOMES MARKET SUMMARY | JANUARY 2021
• Official Market Type: Seller's Market with a 38.58% Sales Ratio.1
• Homes are selling for an average of 97.91% of list price.
• The median luxury threshold2 price is $900,000, and the median luxury home sales price is $1,350,000.
• Markets with the Highest Median Sales Price: Vail ($4,988,100), Los Angeles Beach Cities ($4,200,000), Los Angeles City ($3,425,000), and Vancouver ($3,250,000).
• Markets with the Highest Sales Ratio: Ada County (229%), Austin (181%), East Bay (167%) and Sacramento (154%).
A Review of Key Market Differences Year over Year
January 2020 | January 2021
CONDOS / ATTACHED HOMES
Median List Price $999,450 $1,077,500
Median Sale Price $900,000 $905,500
Median SP/LP Ratio 97.75% 98.55%
Total Sales Ratio 12.94% 23.90%
Median Price per Sq. Ft. $451 $487
Total Inventory 15,864 13,533
New Listings 4,542 3,997
Total Sold 2,053 3,234
Median Days on Market 55 35
Average Home Size 2,015 2,031
CONDO / ATTACHED HOMES MARKET SUMMARY | JANUARY 2021
• Official Market Type: Seller's Market with a 23.90% Sales Ratio. 1
• Attached homes are selling for an average of 98.55% of list price.
• The median luxury threshold2 price is $700,000, and the median attached luxury sale price is $905,500.
• Markets with the Highest Median Sales Price: Vail ($2,525,000), San Francisco ($2,225,000), Island of Hawaii ($2,222,500), and Park City ($1,912,000).
• Markets with the Highest Sales Ratio: GTA-Durham (513%), Central Coast (260%), GTA-York (134%) and Ventura County (125%).
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The Luxury Market Report is a monthly analysis provided by The Institute for Luxury Home Marketing. Luxury benchmark prices are determined by The Institute. This active and sold data has been compiled by various sources, including local MLS boards, local tax records and Realtor.com. Data is deemed reliable to the best of our knowledge, but is not guaranteed.
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