SEATTLE--(BUSINESS WIRE)--Luxury home prices rose 4.2 percent in the first quarter of 2017 compared to 2016, to an average of $1.65 million, according to the latest luxury housing market report by Redfin (www.redfin.com), the next-generation real estate brokerage.
Redfin’s analysis tracks home sales in more than 1,000 cities across the country and defines a home as luxury if it is among the top 5 percent most expensive homes sold in the city in each quarter.
The bottom 95 percent of the market outperformed the luxury market for the ninth consecutive quarter. An average non-luxury home sold for $307,000, up 7 percent compared to a year earlier.
“After tepid price growth in the luxury segment throughout 2016, the luxury market rallied at the start of the year, following big gains in the stock market,” said Redfin chief economist Nela Richardson. “Luxury buyers may be acting on their optimism about the economic outlook thanks to President Trump’s promises of large tax cuts for wealthy individuals and corporations.”
The Trump Administration had an acute impact on the luxury market in the nation’s capital, where the average price for a luxury home rose 32.6 percent in the first quarter compared to 2016. Secretary of Commerce Wilbur Ross and Treasury Secretary Steve Mnuchin both purchased homes over $10 million. Secretary of State Rex Tillerson reportedly bought a $5.5 million home. There are typically only a few $10 million sales in the city in any given year, so the cabinet officials’ high-dollar sales in the first quarter boosted the overall luxury price point for the entire city.
To read the full report, complete with city-specific data and charts, as well as a listing of the top-10 most expensive individual home sales in the first quarter, visit: https://www.redfin.com/blog/2017/04/luxury-market-off-to-a-strong-start-in-2017.html
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $40 billion in home sales through 2016.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.