A new report by Coldwell Banker reveals where the country’s wealthiest individuals are buying properties, listing the top 5 “power markets” for luxury real estate.
Coldwell defines power markets as areas that offer the lifestyle amenities, education, and culture that the uber-rich seek out. Key features of these markets include airport accessibility and a housing stock that lends itself to privacy, exclusivity and stellar views.
The luxury real estate market has taken a beating lately. A recent report by Redfin revealed that luxury home sales – or sales of homes priced above $2 million – fell 3.9% in the fourth quarter of 2018, marking the first time in more than two years that sales in this high-end market have fallen on an annual basis.
But Charlie Young, Coldwell President and CEO, said that the median sold price has remained around $1.4 million, holding steady for the last 18 months, and that this is a key sign of stability.
“While there was a moderation in the pace of luxury home sales in 2018, luxury market prices have held their ground since the housing boom began in 2013,” Young said. “When you take the long view, the luxury real estate picture is steady and stable.”
Here are Coldwell’s top five power markets for buyers and sellers, which Young called hotbeds of luxury home sales at the million-dollar price point and higher:
2018 Top 5 luxury buyer power markets
- Maui, Hawaii
- Palm Beach, Florida
- Washington, D.C.
- Kauai, Hawaii
- Brooklyn, New York
2018 Top 5 luxury seller power markets
- LA Valley, California
- Detroit, Michigan
- Las Vegas, Nevada
- Boulder, Colorado
- Raleigh, North Carolina
Coldwell’s report also revealed other trends in luxury real estate.
High-end real estate in Raleigh-Durham, North Carolina, had the shortest median days on the market – just three – for single-family homes.
For condos, Silicon Valley earned the title with just nine median days on the market.
Collin County, Texas, and Ft. Worth, Texas, had the distinction of the most affordable luxury markets when it comes to price per square foot – $165 for both markets.
For condos, Orlando, Florida, had the lowest median price per square foot at $156.
The most expensive market was the Los Angeles-Beach area – including Santa Monica, Malibu and Manhattan Beach – where the median price per square foot was $1,398.
Vail, Colorado, ranked the most expensive for condos with a median price of $1,629 per square foot.
Finally, Staten Island, New York, was named the most evolving market, standing out for its notable value compared with the other four boroughs of New York City, as its proximity to Manhattan appeals to buyers. In 2018, 134 of the 139 single-family homes listed in the area closed above $1 million.