Luxury home median prices stable – Prices discounted – Buyers market

The latest market report from the Institute for luxury home marketing shows median prices for luxury homes for sale as $1,149,225 and is a graphic demonstration of the way the market plays out during a downturn.

The luxury segment started to feel the effects of the financial crisis a little later than the base market, but is following much the same trends. As the slowdown begins, volumes begin to fall, and median prices increase as the only sales being made are discounted sales at the higher end of the market. The next stage is a leveling off and median prices stay relatively stable, which appears to be the point in time we have now reached. Then, as time goes by, listings are discounted, and activity starts in the lower priced properties, bringing median prices down as activity increases.

Luxury homes for sale are currently spending 180 days on the market compared to 120 days at the same point in time last year. The amount of inventory is relatively stable at just under 40,000 properties priced over $500,000 in the top 10 zip codes for 31 major metro markets around the country, although this is a considerable increase from last year.  41% of listings have been discounted and the ILHM considers the market “cold” or a “buyers market.”

These are national averages, and regions and cities vary quite widely. Nevada, Florida and California for example are skewing the statistics at a national level. A more localised view of particular markets is available to IHLM members only.

The National market report is available here – PDF download

For membership of the ILHM and full reports on a market-by-market basis – Members only