– Institute National Luxury Market Report –
National Summary Charts
The charts below show the 7-day and 90-day rolling averages for median list price, days on market, and inventory for the national composite, a snapshot of how the luxury markets around the country are performing.
The Market Action Index (MAI) provides an at-a-glance measurement of market conditions. The MAI is a barometer of real estate supply and demand. A value above 30 indicates demand is relatively robust, commonly referred to as a Seller's Market. Below 30 is a Buyer's Market. Also use the MAI trends as a leading indicator for prices. When markets fall persistently into Buyer's territory, prices will likely follow.
The definition of this market statistic is the Percentage of homes on the market that have decreased their asking price at least once over the past 90-day period.
In any market conditions, there will always be some number of properties that will decrease their listing price. These may include sellers that drastically overpriced their homes just "to see what they could get" or homes that simply entered the market at a price level above what the market will bear.
Even in strong seller's markets, the Percent Price Decreased will be 10-12%, so some repricing of individual properties is common. In weaker markets, this value begins to rise, so using the Percent Price Decreased is an incredibly insightful gauge of demand levels in the residential housing market. This statistic illustrates how many listed properties may be behind the price curve, listed at a price above what the market is willing to pay for similar properties.
However, Percent Price Decreased alone does not indicate the overall health of a particular market. This statistic should be combined with other market stats to determine the overall direction of a market.
How's the market?
That's the question this report answers for the luxury market nationwide, and for the luxury markets in more than 30 major metro areas.
The Institute's Luxury Market Report is a snapshot of the national luxury market. Like the Case-Shiller Composite Index and other national indices, it is a bundle of data from markets around the country that give a simplified view and try to get at the question of what's happening in the marketplace.
Unlike virtually all of the other reports and indices out there The Institute's Luxury Market Report is focused exclusively on THE TOP OF THE MARKET. We know that markets are local. We also know that in a given place, at a given time, different price segments perform differently. Trophy homes at the top of the market might be in high demand and setting new price records, while in the same city starter homes might be stagnant and seeing major downward price pressures (or vice versa). Most major indices ignore this fact and lump all market segments together to get at some sense of overall market trends. Our focus on the top of the market allows you to clearly see what is really happening in luxury markets around the country and the overall luxury trend at the national level.
About The Institute's National Luxury Market Report
This report is updated weekly and is a compilation of luxury market data from approximately three dozen representative metro areas across the country (much like the Case Schiller Report is a compilation). The report findings are indicative of national trends in the high end residential market. Members of The Institute For Luxury Home Marketing have access to the individual metro area market reports in the Members Only section on LuxuryHomeMarketing.com.
About The Institute
The Institute for Luxury Home Marketing, an independent firm, partners with RE/MAX to provide the official training and designation for The RE/MAX Collection.
The Institute offers an exclusive, ONLINE training for RE/MAX-affiliated agents through RE/MAX University. Completing an online or live Institute course gains agents membership with The Institute with access to exclusive tools, resources, and products to help grow their luxury business and earn the coveted Certified Luxury Home Marketing Specialist™ (CLHMS) designation. According to RE/MAX research, professionals with the CLHMS designation consistently out earn agents with any other designation. In 2016, CLHMS designation holders earned an average of nearly $290,000, 40% more than those who held any other designation.
For more information, visit LuxuryHomeMarketing.com.