by According to recent statistics from Zillow, the average luxury house valuation in Boston has crossed $3 million, marking a new milestone for the city’s upscale real estate market. In terms of luxury real estate values, Boston is ranked ninth out of the nation’s most competitive metropolitan areas.
The average price of a luxury property, which is defined as the top 5% of home values in a certain area, is currently roughly $1.8 million nationwide, but it is much more in Boston and other competitive metro areas.
With ultra-high-end house values of $5.9 million, San Jose is at the top of the list, followed by Los Angeles ($5.1 million) and San Francisco ($4.8 million). The value of luxury homes in Boston is comparable to that of other coastal cities, such as New York ($3.9 million) and Seattle ($3.2 million).
At the lesser end of the spectrum, Buffalo’s luxury real estate averages slightly more than $835,000.
Luxury property values have risen 2.7% in the last year, which is almost twice as much as the 1.4% gain in the overall housing market.
According to a release from Zillow Senior Economist Orphe Divounguy, property prices have risen despite a slowing market, which is encouraging for sellers thinking about listing their homes. Despite a more cautious attitude by both buyers and sellers following the April stock market turmoil, luxury home values in particular have held up well.
In an interview with Boston.com, Bridget Fortunate, an agent at Boston’s premium real estate firm Elevated Residential, said the $3 million amount was a little startling.
According to her, the largest market is in the $1–$2 million [area]. Due to our extremely limited inventory, that is where we are currently suffering the most.
According to the Zillow research, Boston’s luxury property values increased 5.1% annually despite the shortage. Fortunate credited pricing power and consistent demand for the increase.
I think our demand is continuously steadily rising. The prices will go up when you don’t have inventory because people can, she added.
She thinks the luxury property market in Boston is a terrific moment for buyers, despite the low availability.
Although the rates are higher, now is a fantastic opportunity to get a deal if you are in the position to buy. “And I’ve had a lot of success with my personal buyers there,” she said.
The greatest increases in the value of luxury homes have been found in the Midwest metro regions, such as Cincinnati (7.3%), Columbus (6.8%), Chicago (6.3%), and Cleveland (6.1%), with Las Vegas also registering a 6.1% increase. Conversely, Sun Belt towns Miami (-0.5%), Tampa (-1.7%), and Austin (-2.1%) saw drops in luxury prices.
The price difference between luxury and mid-market homes has decreased since 2020, from 5.5 times greater to roughly 5 times higher now, even though luxury homes are still more expensive.
Go here to read the entire report.
Annie Jonas writes for Boston.com as a community writer. She used to work as a freelancer at the Financial Times and as a local editor at Patch.
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