The luxury single-family and attached markets are currently gearing up for the fast-paced spring real estate market. Whether you’re looking to specialize in luxury appraisals or you’re simply reading up on the latest market trends, you may want to pay attention to cities where luxury homes are in high demand. According to the February 2019 edition of the North American Luxury Market Report by the Institute for Luxury Home Marketing, these are the top luxury markets right now.
1. Silicon Valley
Silicon Valley remains at the top of the charts in the luxury market, reflecting the high demand on its current inventory—and this is in spite of its high median current list price tag of $4.1 million for single-family homes and $1.4 million for attached properties. Bloomberg noted that the town of Atherton is America’s richest community for the third year in a row, with an average household income of $450,696. When asked why it continues to be so popular the Mayor, Bill Widmer, said that it was a combination of privacy, large acreages, and accessibility to Silicon Valley and San Francisco that has maintained its desirability.
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2. San Francisco
San Francisco also retains its popularity as we head into 2019, both in the purchase of single-family and attached properties. The distinguishing factor is that the selling price of properties compared to their list price remains fairly close at 95%, with the time on market hovering around 30 days. For this higher-priced market, this is indicative of the city’s demand.
Both Denver and Boulder in Colorado are also proving the exception to the rule, as growth in many major communities throughout North America start to slow. Referencing back to Bloomberg’s annual report, they note that the community of Cherry Hills Village, located just 25 mins south of Denver and just west of the Denver Tech Center, is the third wealthiest location in the US, with an average income of $394,259.
Boulder has become a favorite for large corporations, such as Google, who have built new locations here. With its easy access to an array of recreational activities for every season and a flourishing dining scene, it hardly surprising that employees are happily relocating. Higher paid jobs and low inventory have been the driving factors in this city’s high demand, making it one of the top luxury markets right now.
In Texas, Austin still tops the desirability chart. Similar to Boulder, with enticing opportunities to indulge in culture and outdoor lifestyle activities, Austin also offers increased job opportunities, and many tech companies move their headquarters or open major offices here. Ranch properties are proving popular, too.
More top luxury markets to keep an eye on
Some of the more surprising locations that are seeing growth are cities like Detroit, Raleigh-Durham, Las Vegas, and the condo markets in Nashville, LA Valley, and Washington D.C. These cities were all identified in a recent review of the state of luxury by Coldwell Banker Global Luxury. At the same time, Bloomberg recognized a number of other strong markets in locations such as New Jersey, New York, Greater Chicago, and the Los Altos Hills and Hillsborough communities in California.