North American Luxury Market Report
A significant increase in wealth in 2021 has supported the strength of the luxury market throughout North America. My colleagues in Toronto, for instance, do not see any slow down of the escalated prices and competition within their luxury market. Prime destinations in the US have had the same dynamics. If you’d like the detailed statistics for each metropolitan area, please contact me.
“The global population of individuals with a net worth of $5 million+ reached more than 3.6 million globally in 2021. That was an increase of 19.8% over 2020 and a notable difference from 2020, which saw only a 2.2% gain over 2019. This extraordinary wealthy population growth led to a real estate expansion like we’ve never seen before. A new map for luxury opened up new locations and multiple homeownership in greater numbers. Home as safe haven became the rallying cry for our time.”Institute for Luxury Home Marketing
Philadelphia and Main Line Luxury Trends – 2022
Statistics for the luxury market in Philly and on the Main Line are challenging due to two factors. First, record low inventory and second the small number of properties in each micro-market. One or two sales can skew statistics dramatically which isn’t indicative of trends, more of an anomaly for that month.
Overall, when we look at average sold price by area, there is a drop in February. That doesn’t necessarily mean values are declining. It shows more buyer activity in the under $1M price range.
For details, bookmark our Monthly Market Reports page which updates automatically each month.
Main Line Luxury Market Summary YTD
Using the YTD statistics below we are still at incredibly low inventory levels, an average of 1.15 months. While multiple offers are still common, you can see average days on market for sold properties is trending from 50-65 and current listings are far beyond that at 125 DOM. Sales are tracking at or just slightly above asking price – 100.65%. Some of the news about hot luxury markets can be misleading for our area.
|80||Active||Avg DOM 125|
|28||A/C – Under contract with active contingency||Avg DOM 61|
|78||Pending – Under contract no contingencies||Avg DOM 51|
|167||Closed; Closed Price to List Price Ratio 100.65%||Avg DOM 65|
We are definitely seeing a slowdown in demand, and a shift away from estate homes with pools that we saw in the initial post-COVID buying phase. While people want larger homes with plenty of flex space, they also want to be close to cosmopolitan amenities – restaurants, shopping, and transportation. To gain the best sales results reaching our current global market an aggressive, sophisticated sales plan is needed for success.
Highest Main Line luxury sale YTD – 799 Grubbs Mill Road, Berwyn SOLD for $11.5M cash, listed for $17.5M
Philadelphia Luxury Market Summary YTD
The summaries below include ALL luxury listings in the county of Philadelphia. Condo sales fall slightly behind, with 2.3 months of inventory, average DOM for sales YTD at 114, and a closed price to list price ratio of 97.42%.
|192||Active||Avg DOM 144|
|24||A/C – Under contract with active contingency||Avg DOM 61|
|115||Pending – Under contract no contingencies||Avg DOM 92|
|186||Closed; Closed Price to List Price Ratio 97.42%||Avg DOM 88|