Happy New Year! As we look forward to 2017, let us first reflect on the market in 2016, for luxury homes. In this last quarter newsletter we have added a few statistics that you may find interesting. First, 2016 ended very much like 2015, in terms of sales over $1 million. We saw slight decreases in average sales price and price per square foot, and the total number of sold units was just under 100 for both years. Consistently throughout 2016, more than half of the sales over $1 million were between $1 and $1.5 million.
In one of our new charts, we thought it would be helpful to show the sales in increments of $100,000. Notably, the most sales occurred between $1 and $1.1 million. That segment is actually undersupplied! Homes listed for more than $2 million are still experiencing low activity and high inventories. So, what does this tell us about 2017?
Although interest rates are expected to rise this year, the proposed tax restructuring and robust stock market will likely offset those increases. We anticipate the coming year to be stable, and the sales to be similar or slightly improved over 2016. The very top end of the luxury market is still under downward pricing pressure with the highest amount of inventory. Now more than ever it is important to use the skills of a real estate professional specializing in luxury home sales. Our highly trained, experienced agents are here to assist you whether buying, selling or both!
-Nancy Fennell, Dickson Realty President
Click the image below to read about the luxury home market in Reno and Sparks in 2016.