The two most obvious observations are 1) the market is inverted and 2) the low AOC indicates a strong cash-buyer influence on the market. Keep these issues in mind about the luxury market.
With that said, it’s important to understand that this report is a snapshot of Active, AOC and Pending while it is a cumulative analysis of Closed properties for the month. As such, a high closed-to-listed ratio is understandable in this market because it only means that there are fewer homes currently for sale than closed transactions during the entire month.
There are currently 1,255 properties for sale in the lux market. Of these, 761 (60%) are priced higher than $1 million. Last month, there were 1,307 in this category. The total drop of 52 houses in the luxury market for one month is significant leading into the spring buying season. Inventory is lower than demand while inventory traditionally increases.
This sets up a strong seller’s market in the Luxury submarket that can demand higher prices while interest rates rise because – combined with the information above - interest rates don’t alarm cash buyers.
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, Certified New Home Sales
214-862-7212 (call or text)
DFWmark@kw.com
DFWmark.com
#DFWmark #REALTOR #MarketWatch #luxury #Lux #InvertedMarket #HousingShortage #NewListings #Pending #Closed
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