The last quarter of 2019 showed an upswing in sales in the North American luxury market according to a report produced by The Institute for Luxury Home Marketing. Many prospective buyers from the beginning of 2019 waited to see how home prices would be affected by tax and policy changes. As a result, the market should continue to strengthen heading into spring.
North America’s luxury market for single family homes in December was a balanced market with a 19.3 percent sales ratio. North America’s luxury condo market was also balanced with a 16.7 percent sales ratio. The sales ratio defines the market speed and determines whether the market currently favors buyers or sellers.
- Buyer’s Market < 14.5%
- Balanced Market ≥ 14.5% to < 20.5%
- Seller’s Market ≥ 20.5%
Seattle followed San Francisco, 106 percent, and Silicon Valley, 71 percent, as one of the markets with the highest sales ratios at 66 percent. A Seller’s Market presents sellers with more control over the price point due to fewer homes being on the market combined a strong demand, leading to competition between buyers.
Seattle Single Family Home Luxury Market
- The luxury benchmark (price point marking transition from traditional homes to luxury homes) in Seattle is $1,150,000.
- There were 128 homes available in December, 84 of which sold—a 66 percent sales ratio.
- Seattle homes sold for a median of 98.45 percent of its list price.
- The median days on market increased from 22 days in November to 27 days in December.
Seattle Condo Luxury Market
- The luxury benchmark in Seattle for condos is $800,000.
- There were 86 homes available in December, 23 of which sold—a 27 percent sales ratio.
- Seattle condos sold for a median of 97.44 percent of its list price.
- The median days on market increased from 13 in November to 44 days in December.
Seattle will continue to see a seller’s market until there are enough homes being built to meet the demand.