The North American luxury real estate market in 2024 is doing well, with more growth compared to 2023. There's a strong demand for homes in top locations with unique designs and high-end features. Although sales dipped in June, they bounced back in July, with single-family home sales up by 18.99% and attached homes by 13.30% compared to the previous year. By the end of July, sales growth for 2024 reached 14.82% for single-family homes and 11.35% for attached properties.
New listings have been key to this success. From January to May, more homes were listed, leading to higher sales. Even though June saw fewer new listings, July saw an unexpected rise in both new listings and sales, showing that fresh inventory is important for keeping the market strong. Buyers are becoming pickier, looking for homes that offer something special, like exclusive features and a luxurious lifestyle.
Prices have remained steady. The median price for the top 10% of homes has gone up by nearly 2% since January, even with more homes on the market. In the U.S., luxury home values have increased by 3.9% over the past year, with the most expensive properties doing even better than the general market. As of July, homes are selling very close to their asking prices, with single-family homes and attached properties selling for about 99% of the list price.
Looking ahead, the market might face challenges. If more homes are listed while sales slow down, prices could drop, especially for homes that take longer to sell. High prices and interest rates will likely affect buyer decisions, and changes in the economy or the upcoming U.S. election could also impact the market. Still, there’s strong confidence among buyers and sellers, suggesting that the luxury market will stay strong despite these potential issues.
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