Luxury residential real estate buyers may find bargains in the United States in comparison to the rest of the world. The U.S. is hardly the most expensive when it comes to home prices in its luxury market, as pointed out in a recent article by realtor.com®, examining and comparing luxury housing across the globe.
In fact, China takes the world crown in the area of highest cost for luxury homes, standing currently as the country with the fastest-rising prices in luxury residential real estate around the world. Luxury home prices in Guangzhou, the capital of the southern province of Guangdong, increased dramatically by 36.2 percent from March 2016 to March 2017, according to Knight Frank’s first-quarter Prime Global Cities Index, which ranks the top 5 percent of luxury real estate sales in 41 large international cities.
Meanwhile, the U.S.’s single-digit increases in that time period may seem more modest in comparison.
The top three global cities to land on the list are Guangzhou, up 36.2 percent; Beijing, where luxury home prices increased by 22.9 percent; and Toronto, where prices increased by 22.2 percent.
The U.S. cities landing on the Prime Global Cities Index include Miami (at number 14 on the list with a 4.1 percent year-over-year price increase), Los Angeles (with a 2.5 percent increase), San Francisco (with a 1.8 percent increase), and New York (with a 1.7% increase).
“We’re seeing steady and sustainable luxury price growth in the key U.S. markets,” says Kate Everett-Allen, head of international residential research at Knight Frank. However, the cost of buying luxury homes isn’t rising quite as quickly in the U.S. as some other parts of the world because “there are a lot of major changes taking place both politically and internationally.”
The April 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which reports home listings and sales for all of Collier County (except Marco Island) indicates pending sales for homes in the $2 million and above price range increased by 41 percent. Both March and April activity have residential real estate professionals in the Southwest Florida area entering the summer months with a positive outlook.