Since the market turned in favor of sellers almost three years ago the luxury market has been slowly picking up steam. In the Triangle, a home is classified as a member of the the luxury market when it’s value is at least $500,000. But for the purposes of this post we’re going to start at $1 million as this was the price point that has been the slowest to move in the market.
Year to date 129 homes have sold in the Wake County market with a closed transaction price of at least $1 million, according to the Triangle Multiple Listing Service data report. The highest priced home to date to sell this year closed at $2.95 million in the swanky Country Club Hills area. Last year a total of only 75 homes in the top tier of the luxury market sold with the highest priced home closing at just $2.62 million.
Last year homes priced at $1 million and up took approximately 200 days to sell while that number has dropped to approximately 120 days. By no means can it be considered a seller’s market for homes of this caliber but there’s certainly a great sign of relief for homeowners who have been waiting for the market to return so they can cash in on their investment.
Buyers who can afford the high end market have decided to get off the fence and purchase homes for two reasons. First, there is stability in the economy. Buyers feel that if they make a large investment in a home they don’t anticipate a change to the economy that will suddenly cause the value to dip to jaw dropping lows. Secondly, they have to find a place to park their cash. Not everyone look to shove their money into the stock market. And for those that do they often look to diverse their capital and spread it among asset classes such as real estate that tend not to be as volatile.
Last year the Wake County market cleared 114 homes in total for homes that closed at $1 million. This year the market is set to clear around 200 homes in the same category.
Luxury buyers are back in the market and looking to purchase prime real estate. Sellers who have been considering selling now looks to be a good time.