Data is a great tool if you’re looking to buy or sell a luxury home; however, it can be misleading if you don’t have an expert to interpret it for you. For example, if you look at the local news on our real estate market, you might think the sky is falling and the bottom is falling out. However, this isn’t really the case. Recently, we sold a home for $4.75 million, which was the highest selling price in that town since 2009.
Only one home in that area has sold in the past year for $4.75m. There currently are three listed at/above $4.75m which means there is three years on inventory…which screams buyers market. However, that isn't the case. If there were more homes for sale in that price point that would give buyers more options in homes…and there would be more sales.
The truth is that real estate is hyper-local. What might be true for one area isn’t necessarily true for another. Plus, luxury real estate is a niche market, so a single sale can have a big impact on macro data for an area. To avoid letting outliers and bad information cloud your decision making, make sure to talk to an expert about what’s really going on in your market.
If you have questions about this topic or anything else, please call or email me. I am always willing to help!