Homes priced at the top 25% for a particular area of the country are considered “premium homes.” In today’s real estate market, this is great news for homeowners wanting to upgrade from their current house.
Demand for housing over the past couple of years has come from first-time buyers looking for their starter home. Therefore, many of the more expensive homes listed for sale have not seen as much interest.
According to ILHM’s Luxury Report, this mismatch in demand of luxury and premium homes has created a Buyer’s Market. As a result, a luxury home is defined as one costing $1 million or more.
“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”
Most importantly, current conditions of the market are no cause for concern.
“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”
Luxury can mean different things to different people. Knowing what characteristics mean luxury to you will help your agent find you the home of your dreams.
If you are debating upgrading your current house to a premium or luxury home, now is the time! Contact Freedom First Properties at (714) 941-9669 to learn more about upgrading to a luxury home!