When it comes to real estate, most people know that location is key. Market conditions differ from one neighborhood to the next. But location isn’t the only thing affecting the conditions you’ll encounter when shopping for a house to buy. Your price range will also have something to do with it. Luxury homes aren’t simply more expensive; they’re in a completely different market than regular homes.
The National Association of Realtors’ consumer website recently released its 2018 Luxury Home Index and the results show that luxury home buyers face a far different market than home buyers who are looking for a more affordable home. That’s because, while overall home price increases are showing signs of slowing down, the luxury home market is gaining speed.
In fact, according to the index, there are a rising number of areas with double-digit price growth from the same time last year. In Sarasota, the nation’s fastest-growing luxury market, prices are up 21 percent from last year. Another difference between the overall market and the luxury market is the fact that higher-end homes stay on the market longer. Luxury homes in the 90 counties analyzed were on the market a median of 121 days.