September 13, 2010 Leave a comment
Despite the fact that sales of existing homes has dropped by 25% this July compared to last year, the luxury home market has been outperforming other price ranges significantly. According to the National Association of Realtors (NAR) million-dollar plus properties made up 1.2% of the total sales in 2009, and then rose to 1.9% this past July. The median sales price for July also increased 0.7%, which may be a result of increased sales of expensive properties compared to other price ranges.
Although the luxury home market has been functioning better than other price ranges, it has experienced a decline in inventory of about 5% since the beginning of July, as well as a decline in asking prices. Over the last 90 days, 43% of luxury homes currently on the market have had at least one reduction in asking price, and an additional 19% have been pulled off the market and later re-listed. However, for BCK Real Estate the number of properties sold has increased 81.6% from this year compared to last (see graph below).
Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing (ILHM), states: “While I wouldn’t say the luxury market is in recovery, the growing market share of luxury sales relative to total sales, a slight downward trend in inventory, and sellers who are realistic about price are factors shifting the affluent into a buying mode.”
“We hit bottom a year and a half ago,” John Biondolillo said in a recent news article about the Stowe market. “Things continue to improve…I have never seen a market with so many opportunities for both buyers and sellers. Buyers have the lowest interest rates in our lifetime, combined with a good inventory to choose from. Sellers can sell with confidence knowing that they are getting full value, since prices are stable.”
Recently Stowe Realty’s Teresa Merelman sold a four-bedroom home with 28 acres on 64 Needle Leaf Lane in Stowe for $1.575 million. The market as a whole may be weakening but the luxury market in Stowe is still thriving; nows as good a time to buy or sell a home in Stowe as ever. If you’re interested in selling or buying a home, email our agents or call Stowe Realty at (802) 253-8484.