Luxury Market Takes Larger Chunk of Sales

September 25, 2014

The share of home sales in the $200,000-and-below price range is down 9 percent from a year ago, while those above $200,000 have increased 10 percent in the same time period, according to the latest housing report from RealtyTrac, which reflects August housing data.

Broken down further, the share of sales between $500,000 and $1 million rose 18 percent from year-ago levels, and the share of sales higher than $1 million jumped 38 percent year-over-year.

Overall, RealtyTrac's report shows that the share of sales above $500,000 rose 23 percent from a year ago.

"Higher-end properties are taking up a bigger share of a smaller home-sales pie, boosting the median home price nationwide higher, even as home-price appreciation slows to single digits in many of last year's red-hot local housing markets," says Daren Blomquist, vice president at RealtyTrac. "On the other hand, markets where large institutional investors and other buyers have not picked clean lower-priced inventory are continuing to see strong, double-digit increases in median home prices."

The housing market's overall appreciation slowed in 63 percent of all major markets compared to a year ago, RealtyTrac's report shows.

However, the median price of a residential home sold in August — including both distressed and non-distressed sales — was $195,000, up 15 percent from a year ago to the highest level since August 2008.

Source: RealtyTrac