Leading Luxury Real Estate Marketplace Concierge Auctions Releases Industry's First-ever "Luxury Homes Days On Market Index" For Top-tier Properties
Research shows the longer a luxury home takes to sell, the more its value is diminished
Apr 24, 2017
NEW YORK, April 24, 2017 /PRNewswire/ -- New York City-based Concierge Auctions, the global leader in the luxury real estate auction market, today releases the Concierge Auctions' "Luxury Homes Days On Market Index" for high-end homes. This new index reviews the top 10 sales in 2015 and 2016 for 27 of the country's hottest luxury real estate markets. Based on MLS and property record data, the research demonstrates that often properties either sell quickly for a high percentage of their asking price, or they linger on the market and ultimately sell for a much larger discount to original price.
"Overall, we've seen that when luxury properties are brought to market, one of two things happens — either the property sells relatively quickly (within 180 days) or it remains on the market for a significant amount of time," said Chad Roffers, Chairman of Concierge Auctions.
In high-end markets from Miami to Vail, of the top 10 properties that sold in 2016, those that sold in less than 180 days averaged 80 total Days On Market and achieved 93% of original list price. For properties that remained on the market over 180 days, the average Days On Market was 774 days, and the average sale price versus original list price was 77%.
The data shows that properties in this top-tier range moved more quickly in 2016. For 2015, properties that were on the market for less than 180 days averaged 85 Days on Market and sold for for 87% of original list price. Those that took over 180 days to sell were on the market for an average of 927 days and achieved 76% of original list price. Total days on market for these properties was 535 in 2016 compared to 590 in 2015. The average sales price in 2016 was $11,490,695, down 5% from the previous year.
In general, luxury properties tend to stay on market significantly longer than properties in the median price range. 62 percent of the properties analyzed took longer than 180 days to sell. In 2015, 59% of sales were over 180 days, and that number grew to 65% in 2016.
In the hottest markets where Days On Market are lower, such as San Francisco, there is also a stronger likelihood of homes selling for close to or above their list prices. For the top 10 San Francisco properties sold in 2016, the average Days On Market was 372 days (579 in 2015). Of the top 10 properties, 60 percent that sold under 180 days. Those properties sold on average within 49 days and for 111% of list price.
On the other end of the spectrum, some luxury markets grappled with much higher Days On Market levels. In Vail, Colorado, 70% of the properties were on the market over 180 days in 2016 and Vail experienced an average Days On Market of 702 for the top 10 properties sold in 2016. In Greenwich, Connecticut, where none of the top 10 properties sold in under 180 days in 2015, the average Days On Market for 2016 was 665, down from 940 the previous year.
"It's important that luxury home sellers understand the local market as well as knowing their own priorities. In today's real estate market there is limited liquidity for luxury, mainly because the buyer pool is limited. Sellers are seeking more control over the selling process and realize that switching brokers or reducing the price is not an option," added Roffers. "Our growth at Concierge Auctions continues to be a sign that sellers and forward-thinking real estate professionals are looking to compress the timeline and maximize the price of luxury properties."
The complete Concierge Auctions "Luxury Homes Days On Market Index" is available for download at www.luxuryhomesindex.com.
About Concierge Auctions
New York-based Concierge Auctions is the dominant marketplace for buying and selling the world's finest properties. Since its founding in 2008, Concierge's business has spanned 37 US states/territories and 15 countries, resulting in over $1 billion in sales and many record-setting transactions. Concierge conducts a majority of its auctions through its custom mobile application, which can be downloaded from the Apple and Android app stores. Concierge recently received the "Best Overall Marketing" award from Who's Who in Luxury Real Estate, a global collection of more than 130,000 real estate professionals in more than 60 countries, and has been named one of America's fastest-growing companies by Inc. Magazine for the past three years.
SOURCE Concierge Auctions