The Luxury Home Market continues its slow pace as we head into the traditional 2010 sales season.
There have been many changes in the market since our last update in June but most of those have impacted the market at lower price points. The primary sales activity continues to be first time buyers or lower move up buyers as people continue to take advantage of the 2009 and now 2010 Homebuyer Tax Credits. At the higher price points, activity is still constrained by the availability of loans with prices remaining fairly flat or trending lower.
In the luxury market, sales have continued to drift. In 2009 for the year, there were 67 completed home sales in the $1,000,000+ market down from 93 in 2008 and the peak of 132 in 2007. The average sales price dropped again to $1,481,000 in 2009 from $1,585,000 in 2008. The average days on the market rose from 93 days in 2008 to 117 days in 2009. The most expensive home did rise a bit to $2,500,000. New Homes continued to take a large share with 33 of the 67 completed sales.
Today there are an additional 129 homes currently on the market with an average asking price of $1,984,000. This includes 57 new construction homes and properties ranging up to a list price of $13,500,000. There are also 18 properties under contract at an average price of $1,647,000 including 9 new homes.
Bottom Line: So, as we last found in June, the luxury home market continues to be working against the economy and financing issues as it waits for confidence to return to the market. As before, new homes enjoy a large share of the market as home buyers still appreciate the flexibility that new construction affords.
As always, should you have any questions or are considering a move in the area, please do not hesitate to contact me anytime.
Long & Foster Real Estate Inc - Newtown Square,PA/Bear, DE
Office: 610-353-1199/Direct: 610-359-3853/Cell: 610-618-0808
(All statistics per the TrendMLS System and believed accurate but not guaranteed)