Number of $1 million homes has quadrupled since 2002, now 4.3% of all homes
According to a Trulia research report, $1 million may no longer get buyers into the luxury home market – it’s more like $5 million as the new bar for luxury living. In fact, even $5 million homes are becoming less exclusive, as the number of these homes is five times higher than in 2002. Of all the listings, over 7,000 were listed in the top 100 U.S. metros in 2017 – 0.28% were listed at $5 million or more.
That’s certainly the case on the Westside.
Brentwood had only (7) closed sales in 2017 under $1.5 million, and (73) closed sales over $5 million – that’s 29.2% of all of the homes sold in Brentwood last year. The average closed sale price was $4,277,878 in Brentwood last year.
Comparatively, Pacific Palisades had only (1) closed sale under $1.5 million last year, and (52) over $5 million, which represented 20% of the total market sales. The average closed price for Pacific Palisades was $3,989,789 last year.
On the other hand, Santa Monica had (28) sales under $1.5 million, and (32) sales over $5 million, which represented 12.8% of total market sales in 2017.
Interestingly, of the (758) single-family home sales combined in these areas last year, a total of (24) homes sold over $10 million and the share of $5 million plus homes sold was 20.7% of the total market. The highest closed sales price in Brentwood, Pacific Palisades and Santa Monica last year was $23,000,000. (South Bay had (54) total sales above $5 million in 2017, representing 3.59% of total market sales.)
“Millions saw the apple fall, but Newton was the one who asked why.”
— Bernard Baruch