Home sales

Cities with the highest percentage of luxury home sales

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One of the dominant economic stories since the start of the COVID-19 pandemic has been the fiercely competitive housing market. the median selling price of a home in the United States topped $400,000 for the first time in 2021 amid aggressive bids and bidding wars in markets across the country.

Today’s housing market challenges are the result of a powerful combination of supply and demand factors. The United States has underbuilt housing supply for years, with mortgage lender Freddie Mac estimating that a shortage of 3.8 million homes starting in 2020. The COVID-19 pandemic has brought additional struggles, like supply chain constraints and labor shortages have increased costs and made it difficult for builders to keep pace. On the demand side, millennials are in a peak period for home buying, and a string of years of low mortgage interest rates has drawn many buyers into the market. More recently, the COVID-19 pandemic has brought salary increases for many professions and greater shifts to remote working which have increased demand for larger homes.

The result has been a hypercompetitive housing market that has produced a dramatic spike in home prices since the start of 2020. Prior to the onset of the pandemic, the median selling price of a home in the United States was $329,000. . In the third quarter of 2021, the median sale price peaked at $411,200, before declining slightly to $408,100 in the final months of 2021. With more than half of homes now selling above $400,000, fewer options are available for lower prices. income or first-time buyers, and current homeowners looking to upgrade to bigger or nicer homes must pay a higher price to do so.

But even before the recent spike, the share of high-end home sales in the United States had grown over time. In 2018, just over half of homes sold – 52.21% – had a value of $300,000 or less, but by 2020 that figure had dropped to 45.69%. The share of homes selling between $300,000 and $500,000, which represents a plurality of home purchases, has grown every year from 2018 to 2020. And the luxury home market hasn’t been spared either. : In 2020, the percentage of homes selling between $750,000 and $1 million and the percentage of homes selling above $1 million each exceeded 5% for the first time.

While rising home prices are a national phenomenon, geography plays a major role in how much homebuyers can get for their dollar. In California, more than one in five homes sell for more than $1 million, and other particularly expensive states including Hawaii (17.51%), Massachusetts (10.18%) and New York (9 .7%) also top the list for millions of dollars. dollar home sales. In these places, a home that sells for over a million dollars can be comparable in size, condition, and amenities to homes that sell for much less in other parts of the country. In contrast, 16 states have 1% or less of homes selling for at least $1 million, and in those places those homes can be some of the most luxurious properties available.

The impact of location on property values ​​is even more apparent at the local level. The top four metros for home sales over $1 million are all located in California, and in metro San Jose, the national leader, nearly two-thirds of homes are over $1 million in price.

To determine the metros with the highest percentage of luxury home sales, researchers from Inspection Support Network analyzed the latest data from the Residential Mortgage Disclosure Act. Only conventional home purchase loans issued in 2020 were considered in the analysis. The researchers ranked metropolitan areas based on the percentage of mortgage home sales above $1 million. In the event of a tie, the metro with the highest median property value for homes over $1 million was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 inhabitants were included.

Here are the cities with the highest percentage of luxury home sales.

Major metros with the highest share of home sales over $1 million

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15. Phoenix-Mesa-Chandler, AZ

  • Percentage of luxury home sales ($1 million and above): 3.11%
  • Median property value for homes $1M+: $1,345,000
  • Median income for buyers of $1M or more: $350,000
  • Median down payment for homes $1M+: $410,000

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14. Portland-Vancouver-Hillsboro, OR-WA

  • Percentage of luxury home sales ($1 million and above): 3.38%
  • Median property value for homes $1M+: $1,255,000
  • Median income for buyers of $1M or more: $315,000
  • Median down payment for homes $1M+: $390,000

Photo credit: jdross75 / Shutterstock

13. Nashville-Davidson–Murfreesboro–Franklin, TN

  • Percentage of luxury home sales ($1 million and above): 3.92%
  • Median property value for homes $1M+: $1,335,000
  • Median income for buyers of $1M or more: $336,000
  • Median down payment for homes $1M+: $420,000

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12. Austin-Round Rock-Georgetown, TX

  • Percentage of luxury home sales ($1 million and above): 4.30%
  • Median property value for homes $1M+: $1,375,000
  • Median income for buyers of $1M or more: $377,000
  • Median down payment for homes $1M+: $410,000

Photo credit: Andriy Blokhin / Shutterstock

11. Sacramento-Roseville-Folsom, CA

  • Percentage of luxury home sales ($1 million and above): 4.31%
  • Median property value for homes $1M+: $1,255,000
  • Median income for buyers of $1M or more: $346,000
  • Median down payment for homes $1M+: $400,000

Photo credit: Nicholas Courtney/Shutterstock

10. Denver-Aurora-Lakewood, CO

  • Percentage of luxury home sales ($1 million and above): 4.98%
  • Median property value for homes $1M+: $1,285,000
  • Median income for buyers of $1M or more: $300,000
  • Median down payment for homes $1M+: $420,000

Photo credit: dorinser / Shutterstock

9. Miami-Fort Lauderdale-Pompano Beach, Florida

  • Percentage of luxury home sales ($1 million and above): 6.13%
  • Median property value for homes $1M+: $1,455,000
  • Median income for buyers of $1M or more: $451,000
  • Median down payment for homes $1M+: $490,000

Photo credit: ESB Professional / Shutterstock

8. Washington-Arlington-Alexandria, DC-VA-MD-WV

  • Percentage of luxury home sales ($1 million and above): 9.01%
  • Median property value for homes $1M+: $1,305,000
  • Median income for buyers of $1M or more: $311,000
  • Median down payment for homes $1M+: $360,000

Photo credit: Travellaggio / Shutterstock

7. Boston-Cambridge-Newton, MA-NH

  • Percentage of luxury home sales ($1 million and above): 12.11%
  • Median property value for homes $1M+: $1,355,000
  • Median income for buyers of $1M or more: $320,000
  • Median down payment for homes $1M+: $400,000

Photo credit: Victor Moussa / Shutterstock

6. New York-Newark-Jersey City, NY-NJ-PA

  • Percentage of luxury home sales ($1 million and above): 12.28%
  • Median property value for homes $1M+: $1,435,000
  • Median income for buyers of $1M or more: $378,000
  • Median down payment for homes $1M+: $420,000

Photo credit: Jeremy Janus/Shutterstock

5. Seattle-Tacoma-Bellevue, WA

  • Percentage of luxury home sales ($1 million and above): 14.70%
  • Median property value for homes $1M+: $1,305,000
  • Median income for buyers of $1M or more: $272,000
  • Median down payment for homes $1M+: $390,000

Photo credit: Sean Pavone/Shutterstock

4. San Diego-Chula Vista-Carlsbad, CA

  • Percentage of luxury home sales ($1 million and above): 19.40%
  • Median property value for homes $1M+: $1,375,000
  • Median income for buyers of $1M or more: $290,500
  • Median down payment for homes $1M+: $430,000

Photo credit: Chones / Shutterstock

3. Los Angeles-Long Beach-Anaheim, CA

  • Percentage of luxury home sales ($1 million and above): 27.51%
  • Median property value for homes $1M+: $1,405,000
  • Median income for buyers of $1M or more: $300,000
  • Median down payment for homes $1M+: $430,000

Photo credit: Bogdan Vacarciuc / Shutterstock

2. San Francisco-Oakland-Berkeley, CA

  • Percentage of luxury home sales ($1 million and above): 49.36%
  • Median property value for homes $1M+: $1,425,000
  • Median income for buyers of $1M or more: $290,000
  • Median down payment for homes $1M+: $400,000

Photo credit: Uladzik Kryhin / Shutterstock

1. San Jose-Sunnyvale-Santa Clara, CA

  • Percentage of luxury home sales ($1 million and above): 61.12%
  • Median property value for homes $1M+: $1,455,000
  • Median income for buyers of $1M or more: $289,000
  • Median down payment for homes $1M+: $400,000

Detailed results and methodology

To determine the metros with the highest percentage of luxury home sales, Inspection Support Network researchers analyzed the latest data from the Federal Financial Institutions Examination Council. Residential Mortgage Disclosure Act. Only conventional home purchase loans issued in 2020 were considered in the analysis. The researchers ranked metropolitan areas based on the percentage of mortgage home sales above $1,000,000. In the event of a tie, the metro with the highest median property value for more than $1,000,000 of homes was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 inhabitants were included. Additionally, metros were grouped into cohorts based on population size: small (100,000 to 349,999), medium (350,000 to 999,999), and large (1,000,000 or more).