yahoo!finance
Million-dollar homes are the ‘middle class’ options for homebuyers in many cities
Reporter
Sat, September 2, 2023 at 4:48 AM MST
Homebuyers in some cities have no choice but to buy million-dollar homes as prices near all-time highs.
The share of million-dollar homes is rising across the nation. Redfin found that 8.2% of houses in the US are now worth seven figures, up from 7.3% in February and just shy of the peak of 8.6% recorded in June 2022. Of the 90 million homes studied, approximately 7.46 million units were over a cool million.
A separate report from LendingTree found that two California cities have larger shares of million-dollar homes than properties under that mark. The percentage of homes over $1 million was 66.28% in San Jose and 52.91% in San Francisco. Los Angeles followed at 26.48%, San Diego at 23.15%, and Seattle at 18.70%.
The reports underscore how in many markets, million-dollar homes are not necessarily luxurious; rather, they are the norm, leaving many homebuyers with few affordable options.
"There are a lot of areas, especially really expensive areas, at this point where million-dollar homes have not only become more common, they've also — for lack of a better term — become more middle class," Jacob Channel, report author and LendingTree's senior economist, told Yahoo Finance.
Continue Reading at yahoo!finance > HERE
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Thanks to Rebecca and Yahoo for addressing the $1,000,000 question - when is a $1,000,000 home not a $1,000,000 home
Meanwhile, in the Catalina Foothills ...
the share of million-dollar-homes for sale and sold has also grown over the last few years, some of which I've mentioned HERE HERE and HERE
In the last few years home sales at $1,000,000+ have risen from a puny 6 or 7 % of the single family homes sold in the Catalina foothills to a pretty significant 27% of those sold last year.
And so far this year, thru 8/31/2023, 446 homes have sold including 127 that sold for $1,000,000+, bringing the % of homes sold for $1,000,000+ to 28.4%, slightly ahead of the % numbers quoted for LA and San Diego. Feel free to peruse the 127 sold and see what you think of them. Are they "middle class" as alluded to in the article or the real deal million $$ homes.
Today (9/06/2023) there are 92 single family homes for sale in the Catalina Foothills and 47 (52%) are priced from $1,000,000 up to $12,500,000
The high-end market took off in mid-2020, driven by a wave of buyers escaping more congested places and seeking out large luxurious homes in the foothills. As demand for these properties surged, sellers began listing their homes at increasingly higher prices and, lo and behold, they sold, which only served to fuel the frenzy. In some cases homes that had previously sold in the $700 to $900k range moved up into the $7 figure range.
This rapid rise in prices has slowed this year, as rising mortgage rates on top of high list prices have made it more difficult for some buyers to afford these homes. However, the supply of high-end homes remains tight, and demand is still strong, so the market is still moving forward.
Thank you, and Take Care
John Schneider /Realtor®
Tierra Antigua Realty
Catalina Foothills Homes
[email protected]
520 271-4164
TheFoothillsToday.com
to see all the homes for sale in the Catalina Foothills
(and only in the Catalina Foothills)
