Monday Market Update: The Latest Luxury Market Rankings

Did you know that every quarter, the Wall Street Journal and Realtor.com® partner up to analyze and publish updated editions of the ‘Luxury Housing Market Ranking’? The results come after scoring 60 different luxury markets across the United States in categories such as: supply and demand strength, economic health, and quality of life. Top spots are awarded to metros that emerge as the highest-performing and most attractive metro areas for luxury home purchases.

You may be wondering if Silicon Valley scored among the top-ranking areas and in short, the answer is no. But the report is still insightful as it gives us information into what makes a luxury market desirable and sought out – and this quarter’s theme is – balance! 

Realtor.com® declares that “This quarter’s luxury housing market leaderboard reinforces a theme that has been building: the top-performing luxury markets are not defined by price alone. They are defined by balance. Markets that pair livability and economic durability with workable supply and demand conditions continue to rise, while some traditionally expensive locations are still competitive but face more friction on affordability and risk.”

If we review the features of the metros that topped the luxury list, buyers are focusing on markets where the purchase gives them a lifestyle upgrade. It’s not solely about location – but an area that offers “relative affordability within the luxury tier” (i.e. most for your money!), a housing cost that is relative to local wages, manageable commutes and more balanced supply and choices. Other draws in these markets are a high livability profile – such as a moderate climate, community amenities, resident safety and long-term opportunity over areas with short-term market momentum. 

While the Bay Area is not on the list of top performing luxury markets (supply obstacles here makes it less appealing!), California is represented by in the #3 spot by the San Diego-Carlsbad metro and in the #5 spot is held by the Santa Maria-Santa Barbara metro.

Read more about the unique features of each highly-ranked luxury market here. 

Cheers to learning what luxury means on a bigger scale,

Bobbi 

Bobbi Decker
DRE#00607999

Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/