It seems the appetite for luxury single-family homes is surging across the U.S., according to a report from real estate data provider HouseCanary.
According to Realtor’s Liz Lucking, between the start of the coronavirus pandemic in March and the end of November, the number of single-family detached homes priced above $1 million to have entered contract jumped 28.8% compared to the same period last year.
“The increasing popularity for luxury homes was followed closely by those priced between $600,000 and $1 million, which have seen their contract numbers increase 26.3% over the same time,” she says, according to the report.
At the same time, single-family homes priced below $200,000 have seen contracts fall by 13.7% compared to last year, underlining the increasing desire for buyers to upgrade to larger homes with more amenities. With Americans spending more time at home and working remotely, homeowners are yearning for more square footage, home offices, more outdoor space, and features that are usually accompanied by a steeper price tag.
Lucking quotes Jeremy Sicklick, co-founder and CEO of HouseCanary:
“We anticipate that the housing market will maintain the status quo through year-end, but there is strong potential for a significant shift in the new year. For now, outsized demand from home buyers is motivating sellers to maintain active listings and pushing prices on closed listings to record highs across the country.”
He goes on to say that despite a turbulent election and a seasonal slowing of housing market activity, elevated demand levels continue to drive the housing market’s recovery and have largely offset the steep drop-off in new listings, contracts and closures observed recently.
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