What is the starting price for a luxury home in your market?
WH – Compared to the West Metro, I think the East Metro is a bit more affordable when it comes to “luxury”. I would consider a home priced over $500,000 to be high-end in this area.
How would you describe the pulse of the luxury market?
WH – Days on market is trending better and we’re seeing prices stabilize – not increasing like some markets, but stabilizing. Activity is also steadily increasing; the private showings the last 90 days have really picked up on luxury homes. Many sellers still need to face the reality of the market when it comes to pricing. With that being said, this is also an election year so there are a lot of variables.
High-end homes are moving if presented well and priced accurately. The inventory of these homes is somewhat low.
How different is the luxury market this year compared to last year?
WH – It’s amazingly different. There’s much more activity, energy and optimism. Last year we weren’t seeing as many sales and the days on market time was much longer. Buyers were much more aggressive last year and some sellers therefore decided to wait to list. There are a lot of buyers out there right now as evidenced by seeing 10 or more groups of serious buyers during an open house. Right now, properties that are presented well and priced right are moving – typically in less than 30 days.
What do you see ahead short and long term for your market?
WH – I see things continuing to improve in the short term. We have come through the most difficult times. However, I do anticipate a dip in activity through the election and the holiday’s. Interest rates will start to increase slowly over the next 18 months and that may slow things down in some markets.