Rapid Sales Of Luxury Homes Suggest Uneven Economic Recovery, As Affluent Take Advantage Of Remote Working, Low Interest Rates To Buy Dream Properties

Rapid Sales Of Luxury Homes Suggest Uneven Economic Recovery, As Affluent Take Advantage Of Remote Working, Low Interest Rates To Buy Dream Properties

Topline

Redfin, a brokerage, said on Wednesday that sales of luxury homes surged almost 42% year-over-year in the first quarter, far outpacing the gains by lower-priced parts of the market, suggesting a divergence in the ongoing economic recovery and a deepening of economic inequality.

Florida, Miami Beach, North Beach and area hotels, empty closed public beach due to Coronavirus ... [+] Pandemic. (Photo by: Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images)



Jeff Greenberg/Universal Images Group via Getty Images



Key Facts





Redfin defined “luxury” homes as those in the top 5% tier of prices nationally, with a median price of $950,000.





In contrast to luxury homes, sales of “affordable” homes [the bottom 5% tier, median price $184,440] climbed just 7% in the first quarter, while sales of “mid-priced” homes [median price $272,000] rose 5.9%.







Sales of luxury homes grew the fastest in Miami, Fla. (101.1%), San Jose, Calif (92.3%), Oakland, Calif. (82%), Sacramento, Calif. (79.3%) and Las Vegas (72.7%).





Greg McBride, chief financial analyst at Bankrate.com, told