The end of 2021 ushered in some mixed results when it comes to the types of homes that moved off the market.
According to new data out from Redfin, sales of luxury homes dropped 16.3 percent year-over-year, with the number of luxury listings also down 21 percent. Additionally, the number of new luxury listings that became available between October-December 2021 was also down some 7.1 percent.
Prices, however, continued to climb.
Per the Redfin quarterly report, the median luxury home’s sale price hit $1,038,200—posting a 17.3 percent year-over-year increase. The silver lining for the luxury market is that the homes that were for sale, sold fast!
The typical luxury home that was for sale during the fourth quarter spent 39 days on the market, 18 fewer days than a year earlier.
Homes in the “most affordable” category (those Redfin deems the bottom 5 percent of the market using Redfin Estimates of homes’ market value) were not only plentiful in terms of inventory last quarter, they also had the most sales.
The number of the “most affordable” homes for sale rose 18.6 percent in the fourth quarter, making it the only tier to experience an inventory increase. The “most affordable” homes also saw a 31 percent increase in new listings.
Overall, “most affordable” homes saw an 11.3 percent increase in sales in Q4, compared to the same time period in 2020. The median sale price was $127,500—up 10.9 percent year-over-year.