Luxury Supply Plummets While Demand Rises
In the past two weeks, demand for homes above $1.25 million increased from 302 to 325 pending sales, up 8%. That is a solid improvement and a clear indicator that the luxury market is making its final push to close out the year strong. The luxury home inventory decreased from 1,818 homes to 1,712, a 6% drop in the past two-weeks. The luxury inventory will continue to drop through the end of the year. Since demand increased and the inventory dropped, the expected market time for all homes priced above $1.25 million dropped from 181 days to 158.
For homes priced between $1.25 million and $1.5 million, the expected market time decreased from 111 to 100 days. For homes priced between $1.5 million and $2 million, the expected market time decreased from 173 to 154 days. For homes priced between $2 million and $4 million, the expected market time dropped from 218 days to 164 days. In addition, for homes priced above $4 million, the expected market time increased from 326 to 424 days. At 424 days, a seller would be looking at placing their home into escrow around the start of January 2019
Rates Currently Trending: Neutral
Current Mortgage Rates:
Mortgage rates are trending sideways this morning. Last week the MBS market improved by +37bps. This was enough to improve mortgage rates or fees. Mortgage rate volatility was about average last week.
Mortgage Rates Trends: