Since the beginning of 2017, Redfin has tracked the number of home searches conducted on its website that are filtered exclusively by the $1 million and higher price point. In January of 2021, approximately 10.8% of all searches were for homes exceeding a $1 million list price. This equated to a 2.3% increase compared to the 8.5% recorded in 2020.
In South Florida, Miami led the way with 11.1% of searches exceeding the million dollar mark. West Palm Beach came in at 10.2% while Fort Lauderdale was at 5.1%.
The Golden State
Not surprisingly, California dominated this list with 5 cities representing the most million dollar plus searches. The top 5 cities with their corresponding searches were as follows:
- #1. San Jose (48.5%)
- #2. San Francisco (48%)
- #3. Oakland (31.8%)
- #4. Anaheim (25.1%)
- #5. Los Angeles (24.9%)
In addition, these markets also represented the highest median sale prices, with San Francisco topping the group at $1.4 million and San Jose at $1.2 million, followed by Oakland ($817,000), Anaheim ($800,000) and Los Angeles ($730,000). These record-high prices combined with their corresponding property taxes on top of the states’s high income taxes are reasons why many of these residents are fleeing to other states.
Nationally, the median sale price rose by 13% year-over-year in December. Low mortgage rates combined with skyrocketing home values are certainly reasons for this increase in million-dollar plus home searches. In addition, this also underscores the fact that more affluent Americans are reaping the benefits of unequal recovery from the pandemic-driven recession as they earn money from robust stock portfolios and rising real estate values. Unfortunately, many lower-income Americans, particularly those in the service industry, are struggling financially and aren’t in the market to buy homes right now. Of course, we hope to see the overall economy begin to rebound as the rollout of the various COVID-19 vaccines continues to reach more Americans.
Whether you are in the market for a luxury home or a starter home, we can help. Contact Live South Florida Realty, Inc. to begin your search today!