In addition to the macro-economic factors cited above, the wealth effect of the soaring stock market, coupled with the low cost of long-term capital, are fueling a boom in high-end real estate sales. The high-end segment turned in a stellar performance for the quarter with closed sales up 37% and available inventory of homes for sale up 11.5% over last year which will continue to drive sales in the next quarters. The number of homes that went under contract during the quarter (new pending sales) was up an astonishing 73% with 322 high-end homes contracted compared to 186 in the first quarter of last year. By this metric which provides the most real-time information as new sales take an average of 30-45 days to close, the high-end segment is outperforming the overall market by a factor of 4!
High-End Market Report (Homes $400k+) – 1st Quarter Q1 2014, Q1 2015 Closed Sales Active Listings
Pending Sales – Q1 2015 vs. Q1 2014 Overall Market Homes $400,000+Pending Sales % Increase
Driven by the substantial number of high-end sales, the median sale price per square foot for the overall market posted a 6.7% increase year-over-year. Drilling down to the high-end segment only, prices remained flat over last year at roughly $163 per square foot, but activity remains strong and homes in great condition are selling briskly and at a premium.As impressive as the high-end’s performance has been, Lenihan Sotheby’s International Realty has managed to gain significant market share during the quarter due to our unrelenting focus on quality and service. With closed sales for our firm up 47% for the year-to-date and pending sales up an astonishing 123% over the same period last year we continue to lead the way as Louisville’s luxury real estate firm.
All data used for this statistical analysis sourced from the Greater Louisville Association of Realtors and MetroSearch, Inc.