Concierge Auctions recently released its annual Luxury Homes Days on Market Index, and the report shows a strong shift in demand for luxury real estate within the United States. While there are strong signs of slowing demand for these homes, prices overall for these properties remain strong.
The Luxury Homes Days on Market Index
The Luxury Homes Days on Market Index is an annual report that Concierge Auctions has issued for five years now. The purpose of the report is to examine the luxury real estate market within the United States, and the report does so by examining the 10 highest-priced property sales in 56 of the country's hottest luxury markets. Locations such as the Hamptons, Beverly Hills, and Aspen are regularly featured in the report.
For the properties and markets featured, the report examines sale prices and days on market. These two factors are examined because Concierge Auctions has found that how many days a luxury home sits on the market is most indicative of how close to the asking price that home will sell for.
Days on Market Increased 11% in 2020
According to the report, the average days on market of luxury homes increased by 11 percent in 2020. The average days on market was 497 for 2020 luxury homes sales, which was a 56-day increase over the 2019 average of 451 days.
The breakdown of how long homes took to sell in 2020 was noteworthy. Most homes took either a short or long time to sell -- there wasn't a lot in between. Only one-third of luxury homes sold in under 180 days and two-thirds took more than 180 days to sell. Of those that took over 180 days, the average duration on market was 702 days. That's more than two years.
Sale Prices Correspond to Days on Market
As is usually the case with this real estate report, the 2020 data showed a strong correspondence between days on market and sale price. The homes that sold in under 180 days say an average of 94 percent of their asking price, while those homes that were on the market for over 180 days only got 81% of their asking price on average.
Additionally, some of the markets that saw the highest number of days on market were among the more classic luxury home markets. The Hamptons, Aspen, Martha's Vinyard, and Vail were all among the 10 slowest markets for the year.
Luxury Real Estate Prices Increase Overall
Despite the slowed market, luxury home prices in the United States continued to climb during 2020. The average luxury home sale price in 2019 was $13.36 million. That increased to $15.15 million in 2020, representing nearly a $1.5 million increase.
About Conierge Auctions
Concierge Auctions is the leading luxury real estate auction firm, with more than 90 percent of the market share. The company maintains an extensive list of luxury properties that are for sale. To learn more, follow Concierge Auctions on Twitter.
