Booming Market for Region’s Luxury Real Estate Sector
Nowhere is the recession receding faster than in the luxury home market, where supply has been increasing right along with demand.
According to Lyon Real Estate’s Quarterly Luxury Market Update, inventory for homes priced $900,000 and above increased about 20 percent over second quarter 2013. At the same time, sales clipped along at 41 each month during the second quarter 2014, with typical sales taking place within 62 days. That reflects the lowest number of days on the market in more than two years, when sellers were averaging 96 percent of their asking price.
“That’s a phenomenal reversal from what we saw two and three years ago,” said Lyon Real Estate President Pat Shea. “Relentlessly low interest rates coupled with an excellent selection of available properties and the emergence of strong employment numbers should power the Sacramento region’s luxury market right through year’s end.”
Above the $1,500,000 mark, sales numbers averaged a mere four per month. Months of inventory, continuous days on the market and percentage of list price earned, all changed substantially over 2013 numbers.
Part of the story behind the strong luxury market recovery reflects different marketing methods, particularly in reaching global buyers. Lyon Real Estate’s membership in Luxury Portfolio International gives it the ability to market in nine languages and more than 60 currencies worldwide. A typical visitor to LuxuryPortfolio.com has a household income of $1.32 million and typically owns two homes in the luxury category.
“It’s a hot market sector with a global client base, so it will be very interesting to see how the numbers work out for the third and fourth quarters,” Shea said.