As the real estate market continues to boom, luxury home sales are soaring to new heights. According to the National Association of Realtors, sales of homes priced at $1 million or more increased by a whopping 24.3% in the first quarter of 2021 compared to the same period last year.
The surge in luxury home sales is being driven by a combination of factors. Low interest rates, a strong economy, and a growing population of wealthy buyers are all contributing to the trend. Additionally, the pandemic has caused many people to re-evaluate their living situations and prioritize more spacious homes with outdoor areas.
The luxury home market is also being buoyed by a surge in foreign buyers. Many wealthy individuals from other countries are taking advantage of the strong U.S. dollar and low interest rates to purchase high-end properties.
The trend is being seen across the country, with luxury home sales increasing in all major metropolitan areas. In Los Angeles, for example, sales of homes priced at $2 million or more increased by a staggering 41.2% in the first quarter of 2021 compared to the same period last year.
The surge in luxury home sales is having a ripple effect on the rest of the real estate market. As wealthy buyers compete for the most desirable properties, prices are rising and inventory is shrinking. This is causing a shortage of homes for sale in the lower price ranges, which is making it difficult for first-time buyers to find affordable housing.
The luxury home market is likely to remain strong in the coming months, as long as the economy continues to improve and interest rates remain low. For those looking to purchase a high-end property, now is the time to act.