Luxury Home Sales & the Impact of the Stock Market


In a recent post, CoreLogic looked at the correlation between stocks and the sales of upper-end properties ($1 Million+ sales price). The report revealed:


 “The powerful ‘wealth effects’ generated by the rapid rise in equities between 2009 and 2015 drove a large rise in the sales of homes that sold for $1 million or more.

Historically, sales of homes priced $1 million or more averaged 1.2 percent of all home sales. The spread between high-end sales and equities widened during the housing bubble but then moved more closely in unison. By the time the equity markets had peaked in May 2015, the $1 million or more share of the market had nearly doubled, averaging 2.2 percent for the remainder of the year.”

“在2009至2015年股市快速上漲所產生強大的“財富效應”,推動了售價$ 100萬美元以上的房屋銷售量大幅增加。

從歷史上看,房屋銷售價格$ 100萬美元以上的房屋佔了平均所有房屋銷售的1.2%,高級房屋銷售量和股市在房地產泡沫期間差距較大,但近期更加緊密地同步移動,在2015年5月的股市高峰,$100萬以上的房屋市場銷售量增長了一倍,平均為總市場的2.2%。”

This makes sense. As people see their wealth increasing, they feel more confident in their purchasing power. And, of course, that would also impact their decisions regarding real estate. The stock market dipped earlier this year and there was quite a bit of anecdotal evidence that the upper-end market was beginning to soften.


As we can see in the chart below, the market is again flourishing. That may rejuvenate the luxury market as we move through the rest of the year.



As we proceed through 2016 and enter 2017, the strength of the stock market will be a key factor in the strength of the luxury market. If the stock market falters, look for high-end sales to slow. If the market advances, as it has shown signs of doing most recently, the high-end market will advance.



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