Boston Area Luxury Home Housing Report May 2016. The crazy fast start to the selling season has dissolved somewhat in May. Market statistics have been deviating from the regular patterns here in 2016. There is still a great deal of cash flowing in from outside the area and outside the country. With money continuing to be cheap to borrow there has also been movement up from the lower luxury to the higher. Builders are talking about the sweet spot for new homes to be in the four million range. These graphs and statistics come to us from the International Luxury Home Marketing organization. ILHM is the worldwide leader in luxury marketing. I am a Million Dollar Guild member which is the top one percent of all luxury home associates in the country.
Within the Luxury Market it is confusing to look at the 7 day analysis. Since there are fewer luxury homes and the price point can vary a single high priced home can alter the numbers at it did mid week last week. The 90 day averages give you a broader sense of what is going on. For the Buyers we are heading into the Summer on a good trend. Because the inventory is rising the prices are adjusting to that rise.
The Days on Market (DOM) are always an indication of how robust the market is. Old school agents and sellers still think they should enter the market with a high price to leave room for negotiation when the market is just not responding to this approach. The correct approach today is to price your property at a value in comparison to the direct competition in your neighborhood. In this approach you get more people through which always delivers better offers. Those who refuse to understand this truism will languish on the market forever not realizing that the market is looking at their home as damaged because of the DOM.
Since there are fewer Luxury Homes and fewer Buyers for Luxury Home the DOM will always be a bit longer than the regular market, but the best practices regarding staying alive with a price break in the market remain. If your property is not getting any visitors, or few visitors, you are over priced. A correctly price house with good marketing will get 20 visitors a month and one offer. If you are not getting that and your condition and marketing are as good as they can be then PRICE break is your only option. This has been the Boston Area Luxury Home Housing Report May 2016