2018 Concierge Auctions "Luxury Homes Days On Market Index" Shows Significant Contrasts Market To Market For Top Properties
San Francisco is fastest moving market while homes in some resort markets see slower days on market
Apr 11, 2018
NEW YORK, April 11, 2018 /PRNewswire/ -- New York City-based Concierge Auctions today releases its second annual "Luxury Homes Days On Market Index" for high-end homes. This updated index reviews the top sales from 2015 to 2017 across 27 of the hottest luxury real estate markets. New to the index this year are 13 additional markets to help provide a more comprehensive look at the US luxury real estate market.
Concierge Auctions examined the most expensive homes sold in each market to chart the overall health of the luxury tier. Comparing the 2017 data to the 27 markets featured in last year's report, it appears that even as the economy has remained strong, overall, the average total Days On Market of 522 in 2017 was fairly consistent with 2016 and 2015, at 534 and 590 days, respectively. In 2017, 72% took longer than 180 days to sell, an increase from years prior, at 59% in 2015 and 65% in 2016.
The average sold price for these top 10 properties remained mostly flat, slightly increasing from both 2015 and 2016. The sold price in 2015 was $12,124,696. In 2016, it dropped to $11,490,695, but in 2017 it was up to $12,399,663. While prices at the top of the market increased in some locales, some markets saw either a flattening or a large drop in average sale prices.
"No matter the tempo of the market, our research continues to show that Days On Market have a direct impact with perceived value in the eyes of potential buyers and ultimately, the final sale price. With regard to the top sales last year, properties were on the market over 180 days in all but two of the 40 markets we examined — and 90 percent were listed for sale for over a year," said Chad Roffers, chairman of Concierge Auctions. "We've seen that high-end properties either sell near or at their list price quickly, in less than six months, or they linger on the market for years, often selling for a much lower percentage of list. Every day a luxury property is on the market, it depreciates in value."
This year's report welcomes 13 new markets that represent popular resort markets as well as urban areas that have benefited from the luxury boom of the past few years such as Denver, CO. For the top 10 properties sold in these markets, the average sale price was $8,461,126 and the average Days On Market was 550. In most of these markets, the majority of properties, or nearly 70%, remained on the market for over 180 days. The research, drawn from MLS and property record data, demonstrates that in every economic condition, Days On Market are an important consideration for luxury home sellers.
The total average Days On Market in 2017 was 531 days, with an average sale price to list price of 84%. Of the 29% that sold in less than 180 days, the average Days On Market was 80 days, with properties selling for 93% of the original list price. Of the 71% that sold in over 180 days, the average Days On Market was 708 days, with properties selling for 71% of the original list price.
In the hottest markets where Days On Market are lower there is also a stronger likelihood of homes selling for close to or above their list prices. In San Francisco, the city with the shortest days on market, the top 10 homes were listed for an average of 55 days and sold for 100% of their list price. At the other end of the spectrum, in Nashville, the top 10 properties stayed on the market for 1,062 days total. Four of the 10 properties sold within 180 days and achieved 94% of their list price while the remainder stayed on the market an average of 1,704 days and sold for just 72% of their original list price.
"Many luxury home sellers want to take advantage of the current market cycle, but in today's market, there is limited liquidity for luxury and properties in this category are often difficult to value and sell. Plus, in the ultra luxury realm, the buyer pool is limited. Switching brokers or reducing the price are oftentimes established tactics for properties that haven't sold, but they don't always produce the desired result," added Roffers. "Our growth at Concierge Auctions continues to be a sign that sellers and forward-thinking real estate professionals are looking for a time-certain solution in the buying and selling of luxury real estate, valuing liquidity on their timeline, versus the status quo of what can not only take years to sell, but also a significant cost to carry."
To receive the complete Concierge Auctions "Luxury Homes Days On Market Index," call 917.284.6023.
About Concierge Auctions
Concierge Auctions is the largest luxury real estate marketplace in the world. Powered by state-of-the-art technology, the company has generated nearly $2 billion in sales and is active in 38 U.S. states/territories and 19 countries. Concierge curates the best properties globally, matches them with qualified buyers, and facilitates transparent, market-driven transactions in an expedited time frame. The firm owns what is arguably the most valuable, ultra-high-net-worth client list in real estate and has been named one of America's fastest-growing companies by Inc. Magazine for the past four years.
Kari Neering Kari@relevanceinternational.com
SOURCE Concierge Auctions