Luxury home sales surge in Q3 in U.S.
sales of medium priced homes climbed just 3%, and sales of affordable homes declined 4.2%, underscoring the coronavirus pandemic's disparate impact on Americans with lower levels of wealth.
A handful of West Coast metro areas fueled the surge in luxury home sales during the third quarter.
In Sacramento, luxury sales soared 86.1% from a year earlier, more than any other major metro.
Rounding out the top three were two other California metros—Riverside, CA and Oakland, CA, up 62.8% and 60.9%, respectively.
Portland, OR (+60.6%) and West Palm Beach, FL (+59.7%) also saw sizable gains.
The Sacramento metro was the most popular destination for homebuyers looking to relocate in July and August, according to an analysis of Redfin.com users.
San Francisco was the top origin of out-of-area buyers looking in the Sacramento area.
Over the past five years, growth in prices of America's most affordable homes has consistently outpaced growth in prices of America's most expensive homes.
That is no longer the case.
Luxury home prices increased 6.5% year over year in the third quarter, while prices in the expensive tier rose 7.2%—both outpacing the 2.9% growth in prices of the country's most affordable homes.
The number of luxury homes for sale increased 8.4% year over year in the third quarter, while the supply of homes in all other price tiers declined. ■