What’s Listing And What’s Selling Right Now In The U.S. Real Estate Market
5 min read
Despite a slowdown from the previous year’s frenzy, the United States luxury real estate market is still soldiering on with new listings popping up and big-ticket sales happening everyday.
Here’s a glance at five distinct markets across the country and what’s for sale and what’s been sold.
Telluride, Colorado
Like other ski resorts all over the country, the town of Telluride in western Colorado is facing an inventory shortage and, as such, prices are at record highs. According to the Q3 market report from Telluride Real Estate Corp., the year-to-date number of transactions for 2022 is down 20% from last year and average prices are up 12%.
The lack of single-family home and condominium inventory has also led the regional market to trend largely toward vacant land sales, which made up 23% of total sales. What inventory remains is fetching handsome sums. As of September 2022, 18 single-family homes had sold for the year, totaling $90 million, making for an average of $5 million per home.
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Condos, which accounted for the majority of sales in 2022, averaged nearly $2 million. On the higher end, luxury condo listings can even reach upward of $6 million, such as this Main Street penthouse in the heart of town. Listed by Kip Smith of Telluride Real Estate Corp., the roughly 2,500-square-foot condo features an expansive deck with views of Ajax Peak. While transaction totals are comparatively lower than the previous two years, 2022 still sits above the prior five-year average as buyers continue to show strong interest in the scenic ski town.
Mendham Borough, New Jersey
During the height of the pandemic, small towns in New Jersey like Mendham Borough, some 40 miles outside of Manhattan, saw a rush of wealthy New Yorkers moving into the countryside and buying up luxury properties. But the fervor that defined the pandemic real estate market in North Central New Jersey is now settling and returning to more measured market conditions. In Mendham Borough, demand still remains strong thanks to the town’s collection of historic, estate-like homes that continue to attract buyers from the Big Apple and beyond.
Data provided by Turpin Realtors shows inventory, however, stands at roughly a third of 2018 and 2019 levels and, as such, prices remain high. Still, what inventory is available is selling relatively quickly, with an average of 35 days on the market, outpacing the average from 2021 by 22 days.
The average sales price in November 2022 was about $800,000 and has since been elevated by several multimillion-dollar transactions, including the recent sale of a stunning historic home for $2.6 million handled by Ellen Harrington of Turpin. Indicative of the area, the six-bedroom home possesses a traditional, New England charm but with updated, high-end finishes. In addition to the area’s spectacular homes, a quaint downtown and great schools have also drawn in new buyers.
Whitefish, Montana
Located just 25 miles south of Glacier National Park, the resort town of Whitefish has quickly become one of Montana’s most popular destinations. Over the past five years, the town has seen a tremendous growth of second-home buyers coming to the area from all over the country. The swiftness of this wave of buyers may have proven to be too much for many other ski resort towns, which are running low on supply. However, due to a number of new developments, Whitefish has kept a comparatively steady stream of residential supply with active listings on the rise the previous six months.
Like the rest of the country, Whitefish has not been immune to price increases. The mountain town has seen prices nearly double in a matter of five years. This increase is partly due to the growing number of luxury properties available in town, including this sprawling, multiacre property listed by Anoush Keuylian of National Parks Realty for $2.975 million. While listings at this price range make up a sliver of the market, continued investment in the town’s luxury sector and an increase in multimillion-dollar listings signal a turning point for the region.
La Jolla, California
The sunny Southern California town on the sea, La Jolla, is home to some of the most desirable real estate in the state, as indicated by the number of eight-figure properties currently on the market. After totaling just under $50 billion in luxury sales last year, the La Jolla market has remained relatively strong. However, prices in La Jolla are slowly coming down from record highs earlier in the year. Not impervious to the same headwinds that are slowing much of California’s markets, low inventory remains an issue in La Jolla.
In his prediction for Q3/Q4 2022, Willis Allen Real Estate owner Andy Nelson said a large factor in the shrinking supply is longtime homeowners not putting their properties on the market. This prediction has largely proven to be true and continues to drive competition in the quiet yet highly competitive coastal market. Available inventory includes large-lot properties like this massive six-bedroom, six-bathroom ranch home for about $5.6 million. Listed by Drew and Tim Nelson, the 1954 home is located in the highly sought-after Muirlands neighborhood.
Riomar, Vero Beach, Florida
Across the country on the east coast, the Vero Beach neighborhood of Riomar has not one but two waterfronts. Nestled between the Indian River and the Atlantic Ocean, the area is known for sunny beaches and world-class recreation. Its location means that Riomar is home to some of Vero Beach’s most expensive homes. At this time three years ago, the average listing price in Riomar was $1.75 million. Today, the average is $4 million.
Despite this extreme increase in pricing, luxury homes continue to sell in the area and, in some cases, for above asking price. According to Mathilde Sorensen, co-owner of Dale Sorensen Real Estate, as recently as October 2022 a three-bedroom home sold for $400,000 above the listing price, totaling $2.3 million. Sorensen added that, despite a slowing market in Vero Beach, homes in this desirable location are still closing for solid prices, thanks to the area’s historic character and luxury offerings.
Telluride Real Estate Corp., National Parks Realty, Turpin Realtors, Willis Allen Real Estate and Dale Sorensen Real Estate are exclusive members of Forbes Global Properties, a consumer marketplace and membership network of elite brokerages selling the world’s most luxurious homes.
