Even as the summer property market is set to take off in June, luxury home sales are holding steady across the United States, a new study by Redfin - the online real estate platform - shows.
According to the report, home sales of the 1 percent - constituting the priciest residences in America - have surged 21.1 percent since January 2014 and 35.7 percent as compared with last year's. However, home sales in the rest 99 percent have declined 7.6 percent.
This trend has been identified across states and metropolitan areas in the country. About 10 areas in the country have seen more than 50 percent growth in luxury home sales within a span of 12 months.
Below are the top five areas that have seen immense growth in the sale of most expensive homes bracket (top 1 percent):
1. Oakland, Calif. - 96.2 percent growth in luxury home sales and just 2.2 percent growth in average home sales.
2. San Jose, Calif. - 91.2 percent growth in luxury home sales and 7.3 percent slump in average home sales.
3. San Francisco, Calif. - 72.2 percent growth in luxury home sales and 1.9 percent slump in average home sales
4. Long Island, New York - 72.1 percent growth in luxury home sales and 1.7 percent slump in average home sales.
5. Seattle, Wash. - 67.7 percent growth in luxury home sales and 4.2 percent slump in average home sales.
Prices of the most expensive homes also differ in various markets. For instance, the minimum price of a luxury house in San Francisco was $5.3 million, while in Los Angeles it would cost $3.6 million. In Orange County, the minimum price cut off for a luxury home was $3.45 million and it was $3.38 million in San Jose.
The study also highlighted that 32 percent of these luxury homes were all-cash deals. In a recent report, the National Association of Realtors revealed that complete cash transactions rose to 31 percent in the country when compared with previous year's.
"It's the investor and the wealthy individual that's keeping the market alive," said Mark Zandi, chief economist at Moody's Analytics, to The New Zealand Herald. "The wealthy buyers in particular are fully engaged now. The stock market is up and times are good for them."
The experts note the growing divide and inequality in the home sales. Explaining the dynamics, Sam Khater, deputy chief economist at CoreLogic Inc, told Bloomberg in an earlier interview:
"The real estate market is the ultimate reflection of confidence, wealth and income. The same factors driving the income stagnation in the middle are driving the income momentum at the top."
For more statistics, check out the full report at Redfin. Also, take a look at the top U.S. luxury markets here.
