Weekly Special | June 8, 2020

Is High End Immune To Current Conditions?

So far in 2020, the sale of high-end homes (homes priced above $750K) are up for the year, while homes priced below $750K has seen a decline that began when COVID-19 arrived. Does this say something about an immunity for luxury homes?

The graph above shows how home sales have been distributed by price range and there have been 25 homes sold for $750,000 or more through May in 2020, up 19% over the 21 sold through May of each of the two previous years.

Why Luxury Homes Show Immunity I believe the primary reason that we are seeing this effect in the market has little to do with buyers and a lot to do with sellers.

High-end homes remain in a buyer’s market as the supply for these homes is more than the current demand. In simple terms, there are plenty of homes to choose from if you are in the market to buy a luxury home.

But the opposite is true for homes priced below $450K. Right now there are many very active buyers trying to find a home, but one in three sellers are choosing to sit out of the market due to current conditions, so buyers are waiting for sellers.

This issue went with a longer report on our blog: read the full blog post. The original one-page Weekly Special PDF is still available.