- The number of sales declined by 1.2% in 4Q19 vs. the same period in 2018, the smallest decrease since 2017 when the overall pricing correction began. This trend underscored a flattening in the residential market’s downward trajectory, with more ‘real’ sellers listing at achievable levels and buyers coming off the sidelines after several consecutive quarters with little urgency to transact.
- Interestingly, the number of sales for properties priced below $5 million actually increased by 1.6% year-over-year, signaling that the greatest softness was in the ultra-luxury market.
- The under $3 million category made up 89% of total sales in 4Q19 – a 2% increase from the prior quarter. The average price of these properties was up 4% vs. 4Q18, while market pricing as a whole decreased 11% year-over-year, primarily driven by significant declines in the higher price points.
- In a marked evolution, January 2020 experienced record activity in the luxury market (properties priced $4M+), which saw a total of 26 contracts signed for $231.7 million in a single week. This represented the highest number of contracts signed since the prior November and the highest dollar volume since the previous June.
- Pricing remained key and many of these properties traded at sharp declines from their original asking price. The average days on market across all 26 properties was 648 – a sign that sellers were finally adjusting their expectations, and buyers were making offers where they perceived value – particularly for unique high-quality homes