The Institute for Luxury Home Marketing is recognized as the leading source for providing statistical data and analysis on the luxury real estate market.
In the recent release of their annual Luxury Report, Coldwell Banker Global Luxury partnered with The Institute to garner clear insights and determine which were the top-performing luxury markets in the US during 2019.
The analysis focused on reviewing the Top 5% and 10% of the overall market and included parameters such as median list prices, the median sold prices, median sales-price-to-list-price ratios, the median price per square foot, median days on market, the highest list and sold prices, average monthly inventory and average monthly solds for 2019.
Once these parameters were established, for both single-family homes and condos, Coldwell Banker Global Luxury identified these communities as “2019 Power Markets” of the US. These markets and their statistics are showcased on pages 36 – 45 of The Report.
A Power Market is, therefore, by default, where the wealthiest and most powerful players tend to own property. Typically, these areas are destinations in their own right, offering high-net-worth individuals a range of lifestyle opportunities, cultural experiences, and educational opportunities. Other key indicators of “power” status include airport accessibility, ease of doing business, a prestige brand presence, and a housing stock that prioritizes privacy, views, and exclusivity.
Digging deeper, Coldwell Banker Global Luxury then determined that four powerhouse markets had an evenly distributed hold, in relation to other luxury markets in the Top 10%. Their median sales price, list to sale price ratio, and the number of sales, when the Top 10% was split into four categories, made them top performers for this past year.
The coastal communities of Los Angeles, including Malibu, showed heavy demand from luxury buyers in 2019, specifically in the Top 1-2.5% category, even though the area is still recovering from devastating fires over the past two years. Malibu’s highest price sale took place just nine months after the fire in August of 2018, a cool $100 million for a 14,000 square foot home. Check out page 48 of The Report to discover who was the buyer.
San Diego is also surging, with a sharp rise in sales in the Top 2.5-5% category, which is being fueled by its strong economy and low unemployment. Sales of homes priced above $2 million surged during 2019, up 89% from 2015. In the $3-5 million price range sales were up 21% and 19% in the $5 million and up category.
Amazon. and a roster of tech companies are expanding in the booming Austin, TX area and driving sales in the Top 5-7.5% category, with heavy demand for downtown condos and spacious homes on lakes outside of Austin’s city limits. Austin’s population has increased by 20% since 2010, now hosting more than 180,000 government workers and 50,000 students at the University of Texas. Inventory in downtown Austin during 2019 was on average at less than half a month’s supply.
In the Top 7.5-10% category, Arlington County, VA, sees the new headquarters for Amazon, providing additional fuel for the traditionally tight market just across the Potomac River from Washington, D.C. Arlington has also become a mecca for people wanting to live in close proximity to Washington and for families looking for top-notch schools. Discover more about the “Amazon factor” on page 54 of The Report.
For further insights into these four Top Performing Markets as well as other insights, trends and statistical information about the luxury real estate market during 2019, visit THE REPORT: Global Luxury Market Insights.
Additionally, The Institute’s comprehensive, downloadable monthly Luxury Market Reports will give you the insights you need to stay ahead of trends throughout the United States and Canada, and deliver a monthly analysis on over 80 different luxury markets in North America.
Source: Luxury Insights