Sales of Luxury Homes Soar as Low Rates, Stay-at-Home Shoppers Fuel Market

Sales of high-end homes climbed 41.5% year over year in the third quarter, according to online real estate broker Redfin (NASDAQ: RDFN), the largest year-over-year jump since at least 2013.

In a news release Monday, Redfin said that sales of luxury homes, defined as the top 5% of market values, as well as sales of second- and third-tier houses climbed year over year, while sales in the bottom two buckets fell by 4% each. The median sale price of a top-tier luxury home in the U.S. in the quarter was $862,700, up 6.5% year over year, while the median price of a house in the bottom tier was $90,000.

A for sale sign in front of a house.

Image source: Getty Images.

In a typical downturn, it is the luxury market that takes the biggest hit, but as Redfin chief economist Daryl Fairweather noted, “This isn’t a normal recession.” Changes in behavior driven by the coronavirus pandemic are

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Bay Area home prices soar with suburban boom

With millions out of work, and restaurants, shops and retailers closing, one spot in the economy shines for thriving and affluent professionals — Bay Area real estate.

As if the devastating pandemic had passed over the tech campuses, Spanish-tiled roofs and Tesla-filled garages of Silicon Valley, luxury home sales exploded in August and drove median prices up 16 percent from the previous year to levels approaching the market peak in 2018.

The median sale price for an existing single family home in August in the Bay Area was $975,000, according to DQNews data. The gains were driven by a limited supply of properties for sale and a greater portion of high-end homes selling, agents and economists said.

“We’ve never seen such high price appreciation in a recession,” said Selma Hepp, deputy chief economist with real estate data firm CoreLogic. “The recession hasn’t hit everyone the same way.”

Year-over-year prices soared

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Home For Sale Listings Soar As Pandemic’s Economic Impact Grips San Francisco

SAN FRANCISCO (CBS SF) — Rents are tumbling and the number of homes listed for sale are soaring — all signs that the COVID 19 exodus from San Francisco was not losing its momentum six months into the pandemic.

With many of the region’s top employers still under work-at-home mandates or having furloughed or reduced staffing, the once red-hot real estate market has gone into a chill.

Apartmentlist.com — the San Francisco-based online listing service — said rents in the city have decreased by 5.2% month-over-month in September and are down by 17.8% since the start of the pandemic in March — the fastest decline among the nation’s 100 largest cities.



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© Provided by CBS SF Bay Area


Median two-bedrooms were renting for a cost $2,592 while one-bedrooms were going for $2,240. It was a much different snapshot of the local market at the start of the year before the

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Toronto home prices hit new record as sales soar 42.3% in September

Demand for detached properties helped fuel another month of double-digit sales growth and record-breaking prices in Canada’s largest housing market in September.

The total number of homes sold across the Greater Toronto Area surged 42.3 per cent year-over-year to a new record for September as 11,083 properties traded hands last month, according to data released Tuesday by the Toronto Regional Real Estate Board (TRREB).

Detached homes accounted for more than half of the activity as 5,559 sales were recorded in the month, representing a 55 per cent increase from last year. Meanwhile, condo activity lagged as sales rose 14.6 per cent year-over-year.

The average selling price for all homes rose 14 per cent year-over-year to $960,772 — marking a fourth consecutive month of record average prices in the GTA after the previous all-time high of $951,404 was registered in August.

“Improving economic conditions and extremely low borrowing costs sustained record-level

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August pending home sales soar to a record high

A sale pending sign is posted in front of a home for sale in San Anselmo, California.

Justin Sullivan | Getty Images

Pending home sales rose 8.8% in August compared with July, reaching a record high pace, according to the National Association of Realtors survey, which dates back to January 2001.

Sales were 24.2% higher than August 2019.

These sales track signed contracts on existing homes, not closings, so they are an indicator of closed sales in the next one to two months.

“Tremendously low mortgage rates – below 3% – have again helped pending home sales climb in August,” said Lawrence Yun, NAR’s chief economist. “Additionally, the Fed intends to hold short-term fed funds rates near 0% for the foreseeable future, which should, in the absence of inflationary pressure, keep mortgage rates low, and that will undoubtedly aid homebuyers continuing to enter the marketplace.”

Yun also noted that not

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Home Values Soar Even Higher In August As Inventory Tightens

Competition among buyers drove rapid sales and pushed values up while the rental market softened

– U.S. home values grew to $256,663 in August, a 0.7% increase from July. That’s the largest monthly increase since 2013.

– Low demand continues to push rents lower — typical rent dropped 0.3% from July to $1,771 in August, the biggest monthly decrease since 2017.

– Rapid sales further contracted inventory, which is now 29.4% lower than a year ago.

SEATTLE, Sept. 18, 2020 /PRNewswire/ — Pressure from this summer’s housing inventory shortage caused U.S. home values to rise sharply in August. They are up 0.7% from July to $256,663, the biggest month-over-month increase in nearly seven years, according to the August Zillow® Real Estate Market Report1. Home value growth accelerated last month in 48 of the 50 largest markets and was relatively constant in the other two: Birmingham, Ala. and Richmond

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Canadian Home Sales, Prices Hit Record Highs for August

Home sales and home prices in Canada reached record highs for the month of August, according to data from the Canadian Real Estate Association (CREA). While increases were uneven nationally, with the Greater Toronto Area and the Greater Vancouver Area driving the bulk of the boost, overall across the country, home sales jumped 33.5% in August year-over-year

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Coronavirus deaths in U.S. nursing homes soar to more than 5,500

The number of reported coronavirus deaths in long-term care facilities has more than doubled to 5,670 since last week, according to state health data gathered by NBC News, driven by huge increases in hard-hit states like New York, where more than 2 percent of nursing home residents have died of the virus.

The death count is based on data from 29 state health departments and includes nursing homes, assisted living and other long-term care facilities. An NBC News investigation published last week found 2,246 deaths associated with long-term care facilities in 24 states.

There are now 3,466 long-term care facilities in 39 states with known coronavirus infections, according to state data – nearly 1,000 more facilities than state officials reported to NBC News last week.

For more on this story, watch NBC’s “Nightly News with Lester Holt” tonight at 6:30 p.m. ET/5:30 p.m. CT.

The federal government does not track

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