Each year, Concierge Auctions – the dominant marketplace for buying and selling the world’s finest properties responsible for more than $1 billion in sales – creates the annual “U.S. Luxury Homes Index.” The analysis looks at the 10 highest property sales in 56 high-end markets around the U.S., and according to the research, shows that in every economic condition, days on market are an important consideration for luxury home sellers.
Every Day A Home Sits On Market It Depreciates In Value
“For three years, our research has indicated that the largest factor in determining the price a luxury property will sell for is the number of days that it has been marketed for sale. Every day that a home sits on the market, it depreciates in value,” said Laura Brady, president and founder of Concierge Auctions.“We continue to see that properties either sell quickly for close to their original list price, or they remain on the market for a long period of time and sell for a fraction of this price.”
Palo Alto And San Francisco Have The Fastest-Selling Luxury Homes
The index, which is drawn from MLS and public property record data, provides insight into average days on market in some of the hottest second home markets as well. For example, Palo Alto and San Francisco, California continue to be two of the fastest markets for selling luxury homes at 86 days and 103 days, respectively.
Sarasota And Manatee Counties Have The Highest Average Days On Market
According to the report, Sarasota and Manatee Counties in Florida saw the highest average days on market at 1,109 days. Other markets with high average days on market include Las Vegas at 1,020, Oahu at 981, and the entire state of New Hampshire at 948. In addition, none of the top properties in Sun Valley, Idaho, sold in under 180 days, with average days on market resting at just under two years or 705 days.
Key Findings From The National Report Show:
- Properties depreciate in value with increased days on market.
- Increased inventory drives days on market and price drops; only 38% sold under 180 days, with an average of 81 days and a sale price of 88% to original list price.
- Luxury properties stay on the market significantly longer than properties closer to the median sale prices; the average days on market for the 56 markets was 506 days.
“In every market, luxury properties face unique challenges. These properties are highly distinctive and have a relatively small buyer pool. Not only does price have little bearing on demand, but buyers are often spread out over large geographic areas and they don’t typically all arrive at once,” said Chad Roffers, chairman of Concierge Auctions.“Days on market is an important indicator for gauging a market’s activity. This valuable information can help agents and sellers anticipate the challenges they may encounter.”
To view the full report and see how your market fared, download the complete Concierge Auctions “U.S. Luxury Homes Index” here.