Luxury home sales see biggest spike on record

Luxury home sales see biggest spike on record

Luxury home sales see biggest spike on record
Nearly all sectors of the housing market saw a sharp rebound in 2020 but it was most pronounced in the volume of Americans purchasing high-end luxury homes this year. Affluent home buyers drove luxury home sales 60.7 percent higher this year compared to 2019, compared to a seven percent increase in overall home sales. This is the biggest annual increase recorded by Redfin since record keeping began in 2013.

High-earning home buyers leveraged strong growth in the stock market and low interest rates to relocate to larger homes in more exclusive areas. Double-digit growth in luxury home sales was seen in 49 of the most populated U.S. metropolitan areas including in Riverside, CA where such property purchases were up 80 percent.

Redfin reports that the median price of luxury homes nationwide during Q3 2020 was $862,700.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.