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December 2023 Luxury Market Report

By / March 8, 2024

December 2023 Luxury Market Report

 

 

 

The Institute for Luxury Home Marketing’s December 2023 Luxury Market Report serves as your guide for analyzing trends. ILHM produces this report monthly, and it provides a detailed view of the top luxury residential markets in the United States as well as Canada.

 

The report for December includes several statistics such as:

 

  • Days on Market
  • Sales Prices
  • Number of Sales
  • Sales Volumes
  • Price per Square Foot
  • Sales Price to List Price Ratios

 

Looking through this report, you will notice three very specific market statuses: Buyer’s Market, Seller’s Market, and Balanced Market. A Buyer’s Market means buyers have greater control over the price point. This market type is reflected by a substantial number of homes on the market and comparatively few sales. As a result, demand for residential properties is slow for that market and/or price point.

 

However, a Seller’s Market means sellers have greater control over the price point. Usually there are fewer homes on the market but higher demand. Therefore, buyers are competing for homes, and the often drives sales prices higher.

 

In a Balanced Market, neither buyers nor sellers control the price point at which a property will sell. Also, there is neither a glut nor a lack of inventory. Usually this type of market sees a stabilization of both the list and sold price, the length of time the property is on the market, and the expectations of homeowners in their respective communities (as long as their home is priced in line with the current market value).

 

December 2023 Luxury Market Report: The Glimmer of Change Grows Brighter

 

Last month, we reported a glimmer of hope as the luxury market, for the first time in 2023, witnessed an increase in the number of sold properties and new inventory entering the market compared to the same month in 2022. This encouraging trend continues this month

 

The Numbers are Up in the December 2023 Luxury Market

 

Compared to November 2022, the number of sales last month rose 5.1% for single-family homes and 13.7% for attached homes. This is not the only growth statistic that could show the start, albeit a slow one, of a market comeback.

 

The number of new listings entering the market last month also increased compared to November 2022, by 21.1% for single-family homes and 29.3% for attached properties. The rise in new inventory entering the market is equally significant as it shows a growing confidence by sellers compared to last year.

 

Lack of new inventory has been one of the most significant challenges to the growth of sales during most of 2023, as it created a roadblock for opportunity. This was especially significant in a market where buyers had become highly specific in their property specification preferences.

 

As we noted last month, an increase in new listings has opened the door for this uptick in sold properties. This would not be the outcome, especially at this time of year, if the market was moving in a downward trajectory.

 

Other statistical parameters are also showing growth indications. The median sold price rose year-over-year just under 2% for single-family homes and over 5.3% for attached properties. The sold-price-to-list-price ratio also increased slightly by 0.2% to 98.2% for single-family homes and 0.6% to 99.0% for attached properties.

 

CLICK HERE TO SEE THE INSTITUTE’S FULL DECEMBER 2023 REPORT

 

If you are in the market for luxury property, you should work with a qualified luxury property specialist. You need a real estate agent who is highly connected in the local market and who understands all the details and nuances of luxury properties. There is absolutely no substitute for expert knowledge and significant experience when it comes to the luxury property real estate market.

 

Get exclusive insights into the upper-tier real estate market. Join one of The Institute for Luxury Home Marketing’s live or online training sessions. Enroll today!

 

Cindy Schulte Relocation Specialist, Tour Scottsdale Homes, 72SOLD Program Director, Luxury REALTOR®Be Sure You Choose a Qualified Luxury Real Estate Agent

 

When it comes to luxury properties, I have significant knowledge, experience, and qualifications that will provide you with full assurance and peace of mind as you journey into the buying or selling process. My certifications and designations include all of the following, and more:

 

 

Please call me for a complimentary consultation: 480-788-5446

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