Let’s start by defining “Luxury Properties”. In essence, they are properties with distinct price points that differ from area to area. For the purpose of this writing, I have split this market into three different price levels: $1-3M, $3-5M and $5M+.
After an increase in listing inventory over the first half of 2009, I see some clear signs of movement and a hope for positive things to follow. In general, there was an increase in activity level after May, however it was primarily the lower end of the luxury property market that was moving. This follows the same pattern as previous years, keeping in mind that the total sales volume is higher in this price range. Interestingly, the listing inventory was lower than 2008 at the same time. The lower inventory translates into less properties on the market for buyers to choose from and better opportunities for sellers. With all that said, pricing the home correctly is a big component in the sales activity.
January 25, 2010