Luxury Market Lags Behind General Market in 2017

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According to a report on realtor.com, luxury real estate lagged behind general market growth in 2017, despite that million-dollar homes now make up more than seven percent of the real estate market, a significant increase from 2016.

While popular locations like New York City and Hawaii continue to see their luxury markets expand significantly, 2017 proves the luxury market leaves something to be desired.

Realtor.com attributes the gap to longer days on market for luxury homes; 116 days compared to 71 for general market properties. Additionally, while the entry-level price of luxury homes grew by 5.1 percent in 2017, the overall market saw a 6.9 percent growth in entry-level price.

The luxury market continues to grow and saw a steady uptick in 2017, and can boast rapid, significant growth in areas like San Francisco and Maui. However, when compared to the general market’s growth overall, it becomes apparent that “supply outpaces demand” in the luxury market.

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