luxury homes

Sure, we all know that money is spent on homes along the beach or in the mountains near top skiing areas but new luxury markets are emerging in what might be considered unlikely places.

These twelve metro areas are ranked by year-over-year growth in the $1 million+ listing count. The luxury entry price is also included:

1. Fayetteville, AR – $1.017 million
2. Durham, NC – $1.24 million
3. Santa Fe, NM – $2.73 million
4. Colorado Springs, CO – $1.003 million
5. Knoxville, TN – $1.02 million
6. Asheville, NC – $1.49 million
7. Provo, UT – $1.29 million
8. Kiryas Joel-Poughkeepsie, NY – $1.29 million
9. St. George, UT – $1.5 million
10. Savannah, GA – $1.03 million
11. Hilton Head, SC – $1.97 million
12. Portland, ME – $1.65 million

Over the last eight years, no metro area has seen a faster growth in luxury homes than Boise, ID, while it’s overall population has increased by over 15%.

The growth really started during the pandemic, spurred by the remote work boom and fueled by newcomers coming from California, many looking for a simpler lifestyle and breathtaking natural beauty of the area.

The current listing price in the 90th percentile in Boise is $1,312,937.

Let’s face it: luxury homes are going to be expensive, that’s what makes them “luxury” homes. But there are some areas where the prices have risen less than the nearly 50% increase from April 2020 to April 2024.

The top ten metro areas with the lowest price increase, the percentage follows the name.

1. Washington, DC – -1% (prices are actually cheaper!)
2. Toledo, OH – 3%
3. Winston Salem, NC – 6%
4. Wichita, KS – 17%
5. Stockton, CA – 18%
6. Suffolk, VA 19%
7. Tyler, TX – 19%
8. Tulsa, OK – 22%
9. Tallahassee, FL – 22%
10. Seattle, WA – 24%

Everything is topsy-turvy in this craziest of years – home sales typically slow in quarter three after a more robust spring; the reverse is true this year. Moreover, the median price continues to rise, due to two factors: low inventory which is driving up prices, and a dramatic increase in the sales of luxury homes.

Quarter three saw the median square footage of home sold in the East Bay rise to over 2,700 square feet. As expected, the median sales price increased to over $1,300,000!

Inventory remains low as new listings remain low, driving up the prices even higher but the demand for larger – and more expensive – home remains strong.