What’s the difference between the luxury and the median real estate markets? Here’s what you need to know.
Today we’re taking a look at both the luxury housing market in San Diego and the housing market that includes median-priced homes. These are two completely different housing markets, especially during this time of year.
Anything over $750,000 is considered the luxury housing market. The ultra-luxury housing market is anything over $5 million. The important numbers to look at here are price, the number of homes for sale, and the months of inventory.
For the housing market under $750,000, we are still experiencing a lack of inventory. There are still a lot of homes selling in this strong seller’s market.
The luxury housing market from $750,000 to $2 million is still in a slight seller’s market, but is now more of a neutral market with five months’ worth of inventory. In the ultra-luxury housing market, we have over 18 months of inventory, which is a strong buyer’s market. As you can see, the median, luxury, and ultra-luxury housing markets are all quite different.
“There are still a lot of homes selling in the median housing market.”
One reason for this ballooning of inventory in the ultra-luxury housing market is that tax breaks have been taken away so not as many people are investing in ultra-luxury homes. This has caused people to think we’re heading for a recession, but the truth is that we’re not. People are just investing in other places instead of real estate right now.
A quick word of advice for those of you who are thinking of selling your home: Make sure you have a compelling price and your home is move-in ready if you want to sell for the most money possible.
In San Diego, our housing market continues to be strong for most. If you have any questions for me about buying or selling a home here in San Diego, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
