Mark's Market Update - Evaluating the Luxury Market
Welcome to another edition of Mark's Market Update. I was reading a couple of articles today that I wanted to discuss with you. CNBC had an article titled "Southern California Home Sales Crash. Warning Sign for Nation??" It discussed how sales plummeted by 12%, but we still saw record sales prices. It appears that in Southern California, a lot of people getting out of the market due to rising home prices.
Now let's move on to St. Louis and the indicators we are seeing in the luxury market. When evaluating the luxury market over $1 million in St. Louis County, we looked at the top six municipalities that have the most luxury home sales; Ladue, Clayton, Town & Country, Creve Coeur, Frontenac, and Chesterfield. For the first seven months of 2018, every one of these markets, with the exception of Clayton, are down in unit sales from 2017. Sales in Ladue are down 20%, sales in Clayton are up 50%, sales in Town & Country are down 10%, sales in Creve Coeur are down 30%, sales in Frontenac are down 25%, and sales in Chesterfield are down 10%. However, when including new construction in Chesterfield, unit sales up 22%. The impact of new construction in Chesterfield can be clearly seen. When evaluating those markets for average price, here is what we see: Ladue is down 2%, Clayton is up 2.5%, Town & Country Down is 5%, Creve Coeur is down 1.5%, Frontenac is down 10%, and Chesterfield is up 6% due to new construction.
Overall, the story here is that the first half of the year saw a softening in the luxury market in St. Louis. This is something we will definitely have to keep our eye on over the 3rd and 4th quarter of 2018. If you have any questions about buying, selling, investing, or the value of your home in the meantime, please do not hesitate to call, email or text me. Have a fantastic weekend.
Estimated home valuation: www.StLouisHomeValues.org
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