The Economist Intelligence Unit’s Worldwide Cost of Living survey named Singapore, Osaka and Hong Kong the world’s most expensive cities today. Using New York as a benchmark, the research compared the price of 160 items in different cities around the world.
The current survey was compiled in November 2019 before the outbreak of COVID-19 and the pandemic has already had a major impact on the global financial system. Cities that rely heavily on income from tourism, including Hong Kong and Singapore, could see their economies contract and their cost of living fall. That is likely to result in very different results in future editions of the ranking.
This year’s survey was notable as it saw Osaka displacing Paris in the top-three due to a strengthening of the yen which also resulted in Tokyo climbing from 13th place to joint 9th. New York and Los Angeles are also among the world’s most expensive cities, coming 4th and 9th respectively. They were influenced by a combination of firm domestic demand and strong local currency.
Santa Clara, CA – March 18, 2020 (PRNewswire) The U.S. luxury housing market capped off the year with its greatest show of strength in 2019 as million-dollar sales jumped 11.4 percent year-over-year nationwide and sale prices increased 2.1 percent, according to the realtor.com® Q4 2019 Luxury report released today.
Based on the report, the final three months of 2019 was the only period to reach double-digit sales growth for luxury housing after three quarters of lackluster gains, but recent economic uncertainty could cripple luxury growth in the beginning of 2020.
“A low interest rate environment combined with a flourishing economy and record setting stock markets pushed luxury sales into the double digits for the first time as 2019 came to an end,” according to realtor.com®‘s Chief Economist Danielle Hale. “Buyers jumped at the opportunity to lock in a low rate, while a build-up of luxury inventory gave buyers plenty of options to choose from compared to entry- and mid-level buyers. However, like the U.S. economy, luxury housing isn’t immune to the impacts both short and long-term of COVID-19. Many of the gains made in the luxury market in the fourth quarter could be erased as buyers are asked to stay home and sellers hunker down. It’s pretty clear that COVID-19 is going to have far reaching consequences both in the U.S. and globally, the question that remains is just how much of an impact it will have.”
Compared to the fourth quarter of 2018, which had the highest mortgage rates since 2011, mortgage rates dropped 108 basis points on average during the last three months of 2019. Driven by the sharp drop in rates, the 11 percent jump in sales was a welcome sight for many sellers, compared to the third quarter of 2019 where sales grew just 1 percent. The volume of luxury sales increased in 59 of the 78 luxury markets tracked by realtor.com® in the fourth quarter of 2019, led by Morris, N.J.; Mecklenburg, N.C.; and San Louis Obispo, Calif., which all saw growth of at least 72 percent.
The entry-level luxury price in the 78 luxury markets reached $1.27 million in the fourth quarter of 2019, up a moderate 2.1 percent year-over-year. Despite the year-over-year increase, prices grew 2.9 percent slower than the 5 percent pace of growth during the fourth quarter of 2018.
At the local level, 44 of the 78 luxury markets saw sales price growth in the fourth quarter of 2019, led by Santa Barbara, Calif.; Monterey, Calif.; Eagle, Colo.; Pinellas, Fla.; and San Louis Obispo, Calif., all seeing growth of 11 to 25 percent year-over-year. Six markets experienced double-digit price growth in the final three months of 2019, compared to 15 markets a year ago.
California luxury markets were especially strong during the fourth quarter of 2019 as million-dollar sales grew by 10 percent year-over-year. Consistent with the national trend, this marked the first time in 2019 that million-dollar sales grew after three quarters of declines. Of the 18 markets tracked in California, 13 markets saw annual growth in million-dollar sales. Entry-level luxury prices in California also saw a healthy 2.7 percent rate of growth over last year, pushing California’s luxury entry-point to $1.97 million. Santa Barbara was the fastest growing luxury market in the fourth quarter, with prices reaching $2.88 million, up 25 percent year-over-year, and sales up 29 percent year-over-year.
Top 20 Fastest Growing Luxury Markets
(Based on sale price growth YoY)
County
Luxury (top 5%) Sale Price
Luxury Sale Price YoY
Million Dollar Sales Count YoY
Santa Barbara, Calif.
2,879,000
24.9%
29.0%
Monterey, Calif.
2,359,100
24.4%
51.7%
Eagle, Colo.
2,801,000
22.7%
43.2%
Pinellas, Fla.
762,500
12.0%
-1.6%
San Luis Obispo, Calif.
1,378,100
10.5%
72.1%
Travis, Texas
978,700
9.6%
44.1%
Cape May, N.J.
1,639,400
9.2%
-3.9%
Monroe, Fla.
1,883,500
8.4%
37.5%
Alexandria City, Va.
1,251,500
7.9%
9.3%
Plymouth, Mass.
923,400
7.2%
53.8%
Summit, Colo.
1,791,000
6.9%
24.0%
Mecklenburg, N.C.
785,800
6.6%
83.3%
Placer, Calif.
986,800
6.1%
17.4%
Snohomish, Wash.
896,000
6.1%
14.6%
Fulton, Ga.
1,018,000
5.9%
44.7%
Tarrant, Texas
570,400
5.9%
-17.5%
Arlington, Va.
1,573,300
5.5%
0.8%
Douglas, Colo.
995,100
5.2%
30.4%
Williamson, Tenn.
1,159,800
5.1%
10.4%
Denver, Colo.
1,109,900
4.8%
32.0%
Top 20 Fastest Growing Luxury Markets
(Based on growth of million dollar sales YoY)
County
Luxury (top 5%) Sale Price
Luxury Sale Price YoY
Million Dollar Sales Count YoY
Morris, N.J.
1,073,000
-0.5%
92.9%
Mecklenburg, N.C.
785,800
6.6%
83.3%
San Luis Obispo, Calif.
1,378,100
10.5%
72.1%
Plymouth, Mass.
923,400
7.2%
53.8%
Monterey, Calif.
2,359,100
24.4%
51.7%
Wake, N.C.
688,400
4.1%
49.1%
Riverside, Calif.
803,500
3.3%
45.3%
Fulton, Ga.
1,018,000
5.9%
44.7%
Travis, Texas
978,700
9.6%
44.1%
Eagle, Colo.
2,801,000
22.7%
43.2%
Sarasota, Fla.
852,500
-11.0%
41.5%
Monroe, Fla.
1,883,500
8.4%
37.5%
Montgomery, Md.
1,301,000
2.6%
36.5%
Orange, Fla.
691,000
3.7%
35.6%
Somerset, N.J.
995,800
-5.1%
35.5%
Jefferson, Colo.
868,800
2.3%
34.4%
Sacramento, Calif.
728,600
4.8%
33.3%
Denver, Colo.
1,109,900
4.8%
32.0%
Maricopa, Ariz.
741,300
3.0%
32.0%
Chester, Pa.
782,000
4.2%
30.6%
Top 20 Most Expensive Luxury Markets
(Based on sale price)
County
Luxury (top 5%) Sale Price
Luxury Sale Price YoY
Million Dollar Sales Count YoY
San Mateo, Calif.
3,511,300
-4.7%
8.4%
San Francisco, Calif.
3,424,900
0.4%
-0.3%
Marin, Calif.
3,112,300
-6.3%
21.9%
Santa Clara, Calif.
2,898,700
0.3%
-2.5%
Santa Barbara, Calif.
2,879,000
24.9%
29.0%
Eagle, Colo.
2,801,000
22.7%
43.2%
Monterey, Calif.
2,359,100
24.4%
51.7%
Los Angeles, Calif.
2,111,900
-1.7%
24.7%
Orange, Calif.
1,963,000
-0.3%
10.1%
Monroe, Fla.
1,883,500
8.4%
37.5%
Summit, Colo.
1,791,000
6.9%
24.0%
Westchester, N.Y.
1,681,000
-3.7%
8.1%
Alameda, Calif.
1,678,900
-0.2%
-16.5%
Contra Costa, Calif.
1,674,200
4.3%
19.4%
Santa Cruz, Calif.
1,646,700
-5.3%
-1.4%
Cape May, N.J.
1,639,400
9.2%
-3.9%
King, Wash.
1,582,900
-0.1%
16.9%
Arlington, Va.
1,573,300
5.5%
0.8%
Collier, Fla.
1,544,000
-10.0%
14.5%
San Diego, Calif.
1,536,700
-0.2%
21.1%
Methodology The realtor.com® Luxury Home Index analyzes 95 luxury counties, looking at yearly movement in the entry-level luxury price boundary, defined as the top 5 percent of all residential home sales in a given market for the past 12 months. Price figures are averages for the period. The following (17) markets were excluded from rankings this quarter as we review their data: Barnstable, Mass.; Clark, Nev.; Dallas; Delaware, Pa.; Fairfield, Conn.; Honolulu; Hawaii, Hudson, N.J.; Kings, N.Y.; Lee, Fla.; Maui; Hawaii, Montgomery, Pa.; New York, N.Y.; St. Louis, Mo.; Suffolk, Mass.; Suffolk, N.Y.; Walton, Fla.; Washoe, Nev. Home sales metrics are based on sales data from October 1, 2019 through December 31, 2019.
About realtor.com® Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology,realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals,realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today’s on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visitrealtor.com®.
Denver, CO – March 18, 2020 (PRNewswire) Representing the last full month before the coronavirus became a global pandemic, February saw the third consecutive month of year-over-year increases in U.S. home sales – a streak not seen since 2015. At the same time, inventory across the report’s 53 metro markets plunged 15.8%, marking the fourth successive month of double-digit percentage, year-over-year declines.
“Strong February home sales and limited inventory defined U.S. housing ahead of the challenges brought on by the coronavirus emergency,” said Adam Contos, CEO of RE/MAX Holdings, Inc. “Even as we all adjust to the new landscape of social distancing and limited in-person interaction, houses will continue to be bought and sold. Overall, demand in February was high, inventory remains low, and interest rates are attractive, but exact circumstances vary by community. Professional agents – the local experts – can offer tremendous value right now, providing clarity and expert guidance in an environment that’s new for everyone and changing every day.”
Before the coronavirus struck the U.S. on a large scale, home sales in February – which enjoyed an extra weekend day for Leap Year – increased 7.5% year over year, following strong increases of 13.5% and 10.5% in December and January. The previous streak of increasing year-over-year sales of three months or longer began in December 2015 and continued seven months into June 2016. That was also a period of large inventory declines, like the current stretch of year-over-year drops in inventory that is now at eight months.
February’s Median Sales Price of $260,000 posted a year-over-year increase of 7.9% – the 14th consecutive month where home prices have shot up.
In the nearly 12-year history of the report, three February records were set last month:
Fewest Months Supply of Inventory: 2.8
Fewest Days on Market: 60
Highest Median Sales Price: $260,000
Closed Transactions Of the 53 metro areas surveyed in February 2020, the overall average number of home sales is up 7.4% compared to January 2020, and up 7.5% compared to February 2019. Leading the year-over-year sales percentage increase were Los Angeles, CA at +32.2%, Las Vegas, NV at +28.0%, and Billings, MT at +20.1%.
Median Sales Price – Median of 53 metro median prices In February 2020, the median of all 53 metro Median Sales Prices was $260,000, up 2.0% from January 2020, and up 7.9% from February 2019. Fifteen metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Birmingham, AL at +16.5%, Augusta, ME at +14.5%, and Milwaukee, WI at +13.9%. Three metro areas saw a year-over-year decrease in Median Sales Price, with the largest decrease seen in Billings, MT at -5.2%.
Days on Market – Average of 53 metro areas The average Days on Market for homes sold in February 2020 was 60, up one day from the average in January 2020, and down two days from the average in February 2019. The metro areas with the lowest Days on Market were Omaha, NE at 28, and a two-way tie between Nashville, TN and San Francisco, CA at 34. The highest Days on Market averages were in Des Moines, IA at 119, Augusta, ME at 112, and Hartford, CT at 97. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Months Supply of Inventory – Average of 53 metro areas The number of homes for sale in February 2020 was down 2.6% from January 2020 and down 15.8% from February 2019. Based on the rate of home sales in February 2020, the Months Supply of Inventory decreased to 2.8 compared to 3.2 in January 2020, and decreased compared to 4.1 in February 2019. A six months supply indicates a market balanced equally between buyers and sellers. In February 2020, of the 53 metro areas surveyed, four metro areas reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Denver, CO and Seattle, WA, both at 1.1, and a four-way tie at 1.2.
For specific data in this report or to request an interview, please contact mediarelations@remax.com.
About the RE/MAX Network As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with over 130,000 agents in more than 110 countries and territories. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. Dedicated to innovation and change in the real estate industry, RE/MAX launched Motto Mortgage, a ground-breaking mortgage franchisor, in 2016 and acquired booj, a real estate technology company, in 2018. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit news.remax.com.
Description The RE/MAX National Housing Report is distributed each month on or about the 15th. The first Report was distributed in August 2008. The Report is based on MLS data in approximately 53 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the specific counties established by the U.S. Government’s Office of Management and Budget, with some exceptions.
Definitions Transactions are the total number of closed residential transactions during the given month. Months Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pended) during the month. Where “pended” data is unavailable, this calculation is made using closed transactions. Days on Market is the number of days that pass from the time a property is listed until the property goes under contract for all residential properties sold during the month. Median Sales Price is the median of the median sales prices in each of the metro areas included in the survey.
MLS data is provided by contracted data aggregators, RE/MAX brokerages and regional offices. While MLS data is believed to be accurate, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month the RE/MAX National Housing Report re-calculates the previous period’s data to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization.
