Why Americans Consider Moving to Another State?

Some Highlights:

• In a recent Harris Poll, Americans listed “change in climate/weather” as their top reason for wanting to relocate.
• 41% would move for a “better job opportunity.”
• Being closer to loved ones filled out 3 of the top 6 reasons why Americans move.

ILHM Luxury Market Report for 05/08/2017

THIS WEEK

The ILHM National Report this week looked at 24014 luxury homes on the market. The ILHM Luxury Composite Price this week is $1,624,266. These homes have been on the market for an average of 158 days.

The Market Action Index measures available supply relative to the current level of demand. Index value above 30 indicates conditions favor the seller. See the section below for full details. 

PRICE 

Luxury home prices across the ILHM National sample have stayed relatively stable in recent weeks. This week median price is $1,624,266. 

PRICE PER SQUARE FOOT 

Price per square foot gives us a view to changes in how luxury homes are valued as well as how they're being constructed. Currently median price per square foot in the luxury homes is $421.

SUPPLY AND DEMAND 

Residential prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained trends and an early view on coming price changes.

The ILHM National market is currently in the Buyer's Market zone (below 30), though not strongly so. The Market Action Index stands this week at 29 so luxury buyers should expect to find reasonable levels of selection.

INVENTORY 
This chart illustrates the total number of homes in the ILHM sample each week. These are homes on the market for at least $500,000 in the top 10 zip codes for 31 major metro markets around the county.

DAYS ON MARKET (DOM) 
The properties have been on the market for an average of 173 days.

LUXURY BY REGION
A look at the local luxury markets around the country.

Is the Current Pace of Home Sales Maintainable?

There are some experts questioning whether the current pace of residential home sales is maintainable. Are too many people buying homes like in 2004-2006? Are we headed for another housing crisis? Actually, if we look closely at the numbers, we can see that we are looking at a very healthy real estate market.

Why the concern?

Some are looking at the last four years of home sales and comparing them to the three years just prior to the housing bubble. Looking at the graph below, we can understand that thinking.

However, if we go further back in history, we can see the real picture. After taking out the “boom & bust” years, the pace of sales is growing at quite a natural pace.

And new home sales are way below historic numbers. Dave Liniger, Re/Max CEO explains:

“We expect a seasonal uptick in sales this time of year and March certainly met and somewhat exceeded that expectation. We don’t anticipate the tightening inventory to ease up in most markets until new home construction can catch up to its pre-recession pace. Until then, sellers will enjoy a fast-paced market and buyers will need to work with their agents to get in the right home.”

Bottom Line

The current pace of residential home sales definitely seems maintainable.

Market Statistics for the Month of April 2017