Luxury Market is Back!

Home buyers are once again becoming attracted to luxury home features as affluent buyers stream back into the market. In July 2013, sales of homes costing more than $1 million rose 46.6 percent from the previous July.

Recent studies have shown that the housing market is being driven by the move-up buyer, who have strong incomes, secure jobs, and their stock portfolio is doing well — they are able to buy whatever they want. And they are buying larger houses.”

In 2007, the median size of new homes built for sale peaked at 2,295 square feet. That number fell to 2,159 square feet in 2009. But in 2012, new-home size increased to a new peak of 2,384 square feet, according to the National Association of Home Builders. What’s more, about 41 percent of new homes had four or more bedrooms, up from 34 percent in 2009.

Homes with the largest kitchens and most expansive master suites are the top sellers, but affluent buyers are lured to established suburban communities that are near job centers and have good schools.

Source: “In Housing, Big Is Back (Not Counting the Extras),” The New York Times (Jan. 25, 2014)