Redfin's Alina Ptaszynski reports that the luxury housing market picked up at the end of 2015, bringing its nine-month slump to an end.
Prices for the top 5% of the housing market jumped 3.1% in the fourth quarter compared to 2014, with Philadelphia, Austin, and Sacramento charting the most significant gains. The spike was likely caused by a low supply of luxury homes in many cities. The remaining 95% of the market saw a 5.4% increase over the same period, outpacing luxury home growth for the fourth consecutive quarter.
While the late-year price increase is welcome news for luxury real estate investors, Redfin Chief Economist Nela Richardson is hesitant to call it a lasting trend. “A slowing economy and volatile stock market have many luxury home sellers on edge,” Richardson said. “This concern is warranted in large luxury markets such as Houston, Miami, Tampa and Chicago. Instead to shifting into high gear, luxury prices in these markets declined.”