What you need to know about luxury home sales: New research
New research from real estate firm Trulia has revealed that the average new home sold in the U.S. in March was $1.7 million more expensive than the same month in 2016.
The research shows that the price increase in March compared to the same months last year is due in large part to a surge in luxury homes that are being built as the housing market has stabilized.
The new Trulia report found that the median price of a single-family home rose 6.1 percent in March from a year earlier.
That means the median home price rose by about $1,000 more than a year ago, or about $6,000 over a median price in 2016, the report said.
The average price of an upscale condo rose 3.1% in March, and the average price for a two-bedroom rose 1.7% from a month earlier.
The report also showed that prices for luxury condos rose 4.5 percent in the first quarter of 2019 compared to a year before.
Trulia’s analysis suggests that the prices of luxury homes have increased by more than $100,000 since the end of the recession.
A number of factors are driving the increased price of luxury condos in the market, including:More than 1,000 new luxury condos have been built in the past six months, and most of them are on the coast, said Trulia Chief Economist David W. Prentice.
He said many of the condos were built during the peak of the market in the last year, so it is possible that demand is still strong.
The latest Trulia data also shows that home prices in California are up more than 11% in the same period.
California, with its high cost of living, is the top state for home buyers, with home prices up almost 11 percent from a season ago.
New home sales have surged in California.
The median price for single-detached homes in the state rose 6 percent, the largest jump in a decade, Trulia said.
“The strong economy is helping to keep the market strong in California, and that helps drive prices,” Prentice said.
“But a number of states are struggling to maintain their affordability and have seen a big jump in home prices.
California is one of them.”
In terms of trends, I would say California is still a very expensive place to buy,” he added.