Here is the February 2023 Luxury 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 real estate market is starting to thaw and show signs of life. Year over year stats have the top of the national market up 4.95% to an average price of $494,680. The Executive Class Luxe is performing at 5.85% year over year. The Luxe Class of $2 million + is performing at 6.38%. Uber Luxe, those properties over $5 million, is performing at 7.83%.
Year over year prices increases are starting to back off their highs. To put this in perspective, year over year increases have slid from 10% to 6%. If you bought last year at this time, you are still up close to 6%. Up 37.52% from two years ago. Demand has been off but is picking up. Inventory is still lagging and has yet to restore to 2019 levels. Some markets are experiencing price declines (<5%) due to the inventory dump of iBuyers, institutional investors and buyers adjusting to higher interest rates. Inventory overall is increasing and prices will continue moderating.
When the various areas of the country are analyzed, the data shows that longer-term growth trends in luxury real estate are favorable in the Southeast and Mountain regions of the United States.
Specifically, the data is showing that the three-year average growth rate for luxury real estate in these regions is 37.52%, the five-year average is 46.60%, and the ten-year average is 83.76%. Luxury classes are out performing the lower price ranges in percentage of return.
Luxury real estate in has been steadily increasing in value over the past three, five and ten years. The growth trends in the southeast and mountain regions are higher than other regions, and it’s a good indication for investors and real estate market players that these areas are a good investment opportunity.
Year over Year National Luxury Real Estate Report Map:
Here are the February 2023 Luxury Real Estate Report numbers for the data geeks:
Looking for the 12 month forecast down to the zip code? Follow this link
Methodology for RE Luxe Leaders Luxury Real Estate Report
The data used in the report is focused on the top one-third of markets in the United States, and is collected on a monthly basis. The data is used to identify trends in luxury real estate at the area level, rather than focusing on individual properties. The report aims to provide insight into luxury real estate trends across the country, by analyzing data from the most affluent and desirable markets in the United States.
We divide and define the US National Luxe Real Estate into three categories for our Luxury Real Estate Report:
- 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.
A Parting Thought
We hope that the information provided in this Luxury Real Estate Report is helpful in guiding you on your journey to building a thriving real estate business.
As luxury real estate broker consultants, real estate recruiting coaches, real estate business consultant, and CEO consultants for real estate, we are confident that our resources, insights and strategies can help you achieve your goals.
Remember, success in the luxury real estate industry starts with knowledge and strategy, and we are here to provide you with both.
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