U.S. Offers Lower Prices for Luxury Real Estate

When looking at luxury real estate prices in the United States in comparison to luxury real estate prices in other nations across the globe, the United States offers some bargain options, according to recent research completed by Knight Frank, a global real estate consulting firm.  In fact, when Knight Frank ranked the top 5 percent of luxury real estate sales in 41 large international cities, Miami, Los Angeles, San Francisco and New York were the only U.S. cities on the list. 

Guangzhou, the capital of the southern province of Guangdong in China was at the top of the list, with luxury home prices dramatically increasing by 36.2 percent from March 2016 to March 2017, according to Knight Frank’s first-quarter Prime Global Cities Index.  The city with the second highest luxury real estate price increases was Beijing, where luxury home prices increased by 22.9 percent and Toronto, where luxury home prices increased by 22.2 percent.  The single-digit price increases in the United States are mild by comparison.  

“We’re seeing steady and sustainable luxury price growth in the key U.S. markets,” Says Kate Everett-Allen, head of international residential research at Knight Frank.  Miami, Florida led the list of U.S. cities with the highest luxury home price growth, ranking as number 14 on the overall list. Miami’s super high-end market was propelled by new condos in glass high-rises, which have finally been finished and put on the market.

Miami is not the only United States city bouncing back from the recession in a significant way with regard to the luxury home market.  The April Market Report released by the Naples Area Board of REALTORS® (NABOR®), which reports home listings and sales for all of Collier County (except Marco Island) indicates pending sales for homes in the $2 million and above price range increased by 41 percent.  Both March and April activity have had residential real estate professionals in the Southwest Florida area entering the summer months with a positive outlook.

Overall market statistics by price released by NABOR® indicate a 52 percent increase in pending sales for homes in the $2 million and higher price range, when comparing May 2016 to May 2017 and a 117 percent increase in closed sales for this price range, when comparing May 2016 to May 2017.  Meanwhile, the median closed price for the overall market in this price range for the Naples area decreased by 8 percent from May 2016 to May 2017.  Single family home market statistics by price for the Naples area show an 85 percent increase in pending sales for single family homes priced at the $2 million and over price range from May 2016 to May 2017 and a 78 percent increase in closed sales for this price range when comparing May 2016 to May 2017 closed sales numbers.  The median closed sales price for single family homes in this price range increased by 2 percent from May 2016 to May 2017.