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Luxury Home Sale Trends

In the U.S., the top one percent of homes, which are the most expensive homes, is increasing in sales. In comparison to last year, the sales of these luxury homes have increased by 35.7%. Already in 2014, the sales have risen 21.1%, with an expectation to keep rising. Cities across the U.S. are being affected by this trend. There are 10 cities that had an increase in luxury sales of over 50% in one year. While the rest of the 99% of homes in the U.S. have decreased in sales by 7.6%.

 

Here are the top 5 cities to experience the most growth in the sale of luxury homes, three of which are from California.

1. Oakland, California. They saw a growth of 96.2% in sales of the top 1% of homes, while the other 99% only grew by 2.2%. In the top five cities, this is the only city to experience an increase in both categories.

2. San Jose, California. Experiencing an increase of 91.2% in expensive homes, the average home sales decreased by 7.3%.

3. San Francisco, California. The luxury home sales rose by 72.2% while the rest of home sales dropped by 1.9%.

4. Long Island, New York. With a 72.1% increase in luxury home sales, the remaining home sales decreased by 1.7%.

5. Seattle, Washington. They experienced a rise in luxury home sales by 67.7% and a drop in standard home sales by 4.2%.

San Diego is thirteenth on the list. Already this year, this city has seen an increase of luxury home sales by 25.7%. The remaining 99% of homes have decreased in sales by 12.3%. In order to purchase a home in the top 1% in San Diego, an individual needs to have a minimum of $2,400,000. The average monthly mortgage payment for this home would be $9,586. These individuals would need to be making an estimated annual income of $411,000.

A large portion of the individuals purchasing luxury homes pay in cash. Across the U.S., 44.7% of the transactions made in buying a luxury home were done in cash. This is a 31% increase compared to last year. In San Diego, the number of all cash payments is higher, at 45.2%.

Real estate is continuing to thrive because of the top 1%. With home sales lower this year than last year thus far, the increase in luxury homes is keeping the market alive.

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