Tensions between Japan and South Korea come as the U.S. and its trading partners are embroiled in a global trade war.Technologyread more
The one-to-eight stock split would mean the current number of ordinary shares — which stands at 4 billion — will increase to 32 billion. It comes ahead of a reported Hong Kong...Asia Marketsread more
Minutes from the Reserve Bank of Australia's monetary policy meeting in July showed the central bank was ready to adjust interest rates if required.Asia Marketsread more
Current and former Tesla employees working in the company's open-air "tent" factory say they felt pressure to take shortcuts to hit aggressive Model 3 production goals,...Technologyread more
China's fiscal spending increased 10.7% in the first six months from a year earlier, the finance ministry said on Tuesday, underlining the government's bid to support the...China Economyread more
The findings by McKinsey and Company come amid a year-long tariff fight between the U.S. and China, which has spilled into areas such as technology and security.China Economyread more
Microsoft's considerable reach into the corporate world isn't something Slack CEO Stewart Butterfield is very concerned about.Technologyread more
A devastating outbreak of African swine fever that has killed millions of pigs in China is changing attitudes in a country where farm hygiene has often been seen as lax by...Livestockread more
In a closed-door meeting at a Manhattan mansion, executives outlined changes to controversial software that was implicated in two crashes.Aerospace & Defenseread more
President Donald Trump and the RNC are picking up key supporters in the business community who did not back him as a candidate in 2016.2020 Electionsread more
Amazon workers in Minnesota and Germany are striking as Prime Day kicks off, in a stand against working conditions and wage practices. The action in Minnesota represents the...Retailread more
The supply shortage that has been plaguing the nation's housing market for the past two years has now affected the most expensive homes.
The number of multimillion-dollar listings is suddenly dropping, and that is only making these pricey homes, well, pricier.
The top 5 percent of homes by price sold in the third quarter saw their values increase 4.9 percent compared with a year ago, hitting an average of $1.71 million, according to Redfin, a real estate brokerage.
The higher prices are the result of a sharp decline in listings in the luxury sector. The number of homes for sale priced at or above $1 million fell just over 18 percent compared with the same period last year.
"There is still strong buyer demand for high-end homes," said Redfin's chief economist, Nela Richardson. "Despite declining inventory, luxury sales soared in the third quarter."
Sales of homes priced at or above $1 million were up 11 percent from a year ago, while sales of homes priced at or above $5 million were up almost as much at 10 percent, Richardson explained.
At the ultra-high end, the number of homes priced at or above $5 million fell 19 percent. This marked the first quarter in which super luxury listings fell year over year since Redfin began reporting on the luxury market in 2014.
Given the high demand, supplies will likely continue to fall. Homebuilders are turning their attention to the lower end of the market, where demand has been rising for years and where the lack of supply is acute. The average price for nonluxury homes was $336,000 in the third quarter, up 5.3 percent compared with a year earlier.
Luxury homes are also selling faster, although not as fast as the rest of the market. Luxury homes in the third quarter sold on an average of 70 days, four days faster than a year ago. Nonluxury homes sold on an average of 53 days, a full week faster than last year.
There may be several reasons for the surge in luxury demand. The U.S. stock market has been on a tear all year, hitting new highs almost daily. Demand from foreign buyers, who tend to favor the luxury market, has also been strong.
Of course all real estate is local, and high-end homes are no different. The town of Longmont, Colorado, led the nation with the biggest annual price jump in the luxury sector. The average price increased 34.7 percent to $1.55 million compared with last year. Fort Lauderdale, Florida, also saw big gains in luxury prices, (+28.7 percent) as did St. Petersburg, Florida, (+19.6 percent).
The average price for a luxury home fell furthest in the third quarter in the cities of Delray Beach, Florida, San Francisco and Boca Raton, Florida, where prices fell 26.9 percent, 14.7 percent and 13.8 percent, respectively, compared with last year.