Boston Area Move In Homes Luxury Housing Report April 2016. Brought to you by the Institute for Luxury Home Marketing (ILHM) which tracks and reports on the luxury real estate market throughout the world providing us an insight into this segment of our real estate market. Luxury is defined as the top ten percent of the overall market at the time. The way it is defined in the Boston area is by taking all the homes on the market in the MLSPIN system and determining what the top 10% is. Because of the diversity of our housing markets from town to town what is luxury in Braintree is not the same type and style of home as it would be in Weston.
With luxury one very expensive house sold will make the system spike as it did in early April. The 90 day cycle is showing some positive movement, but with this comes more inventory. If houses in the luxury market are selling, then more houses are coming into the market this Spring. As you can see on our left here in the short market and the longer time frame we have more properties coming on to the market which will drive prices down a bit over the next cycle.
Days on Market is another very important statistic. Many Sellers believe they understand the value of their home, but what they really understand is what they want and not what a Buyer (who is a different person than the owner) is willing to pay for that ownership. The Buyer is the person in this transaction that makes the determination on value. Too often agents are willing to accept the idea of price from the Seller who is not a professional and is looking at the market through their own prism and this prism is distorted by their own personal need. The difference between a good agent and a great agent is their ability to price a property correctly in whatever market exists at the time of the listing.
If your luxury property is sitting longer than the average property in your area in your price range there are only 3 reasons to consider, Price, Condition and Marketing. Look first to Condition and Marketing because these are definable. Are you getting enough people through? Are you getting offers? If not then it is your price, no matter what you think. You may say to yourself we have not attracted the right buyer yet, but real estate is a process and whether you have your final buyer or not this system leaves clues. If you are not getting offers and your property continues to languish on the market with not much activity you can change that with your pricing strategy. To get this right, give us a call and we can help you further understand your property marketing. This has been the Boston Area Move In Homes Luxury Housing Report April 2016