Boston Ranks in Top 10 for Luxury Sales in U.S.
Luxury home sales, those priced over $1 million, are outpacing the sales of the remainder of the housing market in the U.S.—according to a recent report by Redfin. Out of the top 10 cities in the U.S. with top luxury sales numbers, Boston fell at number 9. While some signs are leading many to believe the luxury market may also see a slowdown in 2015, Redfin believes Boston may not see this same pattern.
While the housing market as a whole saw a drop of 1.2% in sales in Q3 of this 2014 compared to Q3 of 2013, sales for homes priced at $1 million or more increased by 9% during the same period. Given the fact that the luxury market was the first to recover post-housing-crisis, it’s not altogether shocking. Sales have benefited greatly by lower interest rates, a healthy stock market and purchases made by overseas investors.
Unfortunately, due to increased prices U.S. real estate is starting to lose some of its overseas appeal. Many of the cities that saw floods of investor purchases, such as Los Angeles and Miami, have seen moderate or declining sales for luxury properties recently. While Boston has seen decent overseas investor interest, a great deal of Boston’s luxury sales increases are a result of the city’s ever-growing biotech and tech industries. For this reason it’s believed luxury sales may continue to stay strong so long as these industries do.
Redfin Chief Economist Nela Richardson stated, “Boston has a huge international population. It’s one of those cities that’s recognized, not maybe as much as New York or LA, but it’s increasingly one of those of cities where international investors want to put their money.”
It seems Boston luxury real estate may continue to be on the rise for some time. If you’re interested in purchasing high-end Boston real estate contact a local real estate firm that specializes in this sector of the market.