Here is the July 2022 National Luxe Real Estate Report by the staff at RE Luxe Leaders. Each month we take a look at the US Luxury Real Estate Stats. Admittedly the numbers skew in luxury from pocket to pocket, but keeping an eye on the trends in a year over year, three, five and ten year gives us some very interesting insights.
The Fed is actively raising rates. Still a long way off from the aggressiveness as we saw in the late 70’s and early 80’s. This is slowing the housing market and causing the resurgence of creative financing models. Uncertainty in the Crypto and stock markets have affected the upper middle class’s ability to close a percentage of the pending deals. With that said, we are still seeing appreciation in most Luxe markets across the US. The real estate market is slowing, but still going up.
Year over year stats have the top of the national market up 17.16% to an average price of $509,863. The Executive Class Luxe is performing at 20.55% year over year. The Luxe Class of $2 million + is performing at 21.32%. Uber Luxe, those properties over $5 million, is performing at 23.10%.
Much has been said about listing price decreases. Yes, we are seeing a softening of demand with inflation and rising interest rates in the lower price ranges. However, the softening is taking us from a frenzied market to one that is less so. Inventory is increasing and prices will start to moderate into a slower growth curve.
When we take a look at the various areas, we see longer term growth trends favor the coasts. Three year luxe averages are up 43.42%. Five year luxe real estate averages are trending at 54.44%. Ten year luxe real estate averages are up 98.79%.
Year over Year National Luxe Real Estate Report Map:
Here are the July 2022 Luxe Real Estate Report numbers for the data geeks:
We use the national data for the top 1/3 of each market in the US. While we generally recognize luxury at the property level, this report looks for area trends.
We divide and define the US National Luxe Real Estate into three categories:
- Executive Class. Areas where properties currently average sold prices of $750,000 and higher.
- Luxe. Areas where properties currently average sold prices of two million dollars and higher.
- Ultra-Luxe. Areas where properties currently average sold prices of five million dollars and higher.