Luxury Home Price Growth Outpaces Other Homes

Luxury home price growth is outpacing non-luxury home price growth according to a study performed by Redfin. Luxury pricing has skyrocketed with the lack of good luxury inventory in the Chattanooga area. Nationally, the luxury home inventory is up by 13% this year. Every day homes are also still selling despite rising interest rates, but prices of those homes are not growing like luxury home prices are. Luxury home prices increased the first quarter of 2024 by 9% year over year. That makes the luxury home price growth be twice the price growth of non-luxury homes. The luxury real estate market has held up better than the non-luxury, because many luxury home buyers purchase with mostly cash. The rising interest rates are not as big of a concern for luxury home buyers particularly when 46.8% of luxury home buyers are paying cash for their homes.
“People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise,” said David Palmer with Redfin. David went on to say that luxury home sellers feel like it is a good time to cash in on their equity right now.
We at Walldorf Homes have seen the luxury market to be extremely strong right now with great price growth. The Lookout Mountain median home sale price was up 6.7% in March. Signal Mountain’s median sale price was up by 23.5% in February but down by 10% in March probably due to a lack of high end inventory to sell. Areas with pockets of upper end homes in East Brainerd, Ooltewah, and Harrison posted 9% to 21% gains in the median home sale price in March.
Call the Walldorfs to sell your luxury home or to buy a home at 423-544-7700.