Luxury Markets Across The Country See A Banner Year

Compass, Inc. (NYSE: COMP), a leading technology-enabled residential real estate brokerage, today released a market data report based on findings by Compass’ Senior Managing Director, EA Stribling-Kivlan. The report focuses on residential real estate market data from October 2021 and expands upon luxury trends across the country with a spotlight on three Compass markets: New York, NY, Los Angeles, CA, and Miami, FL.

“Throughout 2021, luxury markets across the country saw a banner year in 2021, with record sale after record sale, particularly in New York, Los Angeles, and Miami,” said EA Stribling-Kivlan, Senior Managing Director at Compass. “Surging prices were definitely the main theme as, on average, these three metros saw an average of over 14% in median sales price growth year over year.”

“October 2021 saw almost a quarter (24%) of national residential sales being transacted in all-cash, which is 1% higher than September 2021, and 5% higher compared to October 2020,” said EA Stribling-Kivlan. “This is an astounding figure to see as there is clearly a lot of cash in the marketplace being saved, earned, and spent.”

National market updates:

With high demand and low supply, the national average of days on the market for October 2021 was hovering around 18 days, which is down from 21 days compared to October 2020. Ultimately, 82% of homes put on the market in October 2021 were on the market for less than a month.
First-time home buyers have continued to slow their presence in the market, with 29% of October 2021 sales going to first-time home buyers, down from 32% in October 2020.
In contrast to first-time home buyers, individual investors and second-home buyers continue to assert their presence in the market, accounting for 17% of October 2021 home sales, inching past 14% from October 2020.
24% of all home sales in October 2021 were all-cash, compared to 19% in October 2020, also demonstrating the continued interest from individual investors and second-home buyers.

Focusing on New York, NY, Los Angeles, CA, and Miami, FL, EA Stribling-Kivlan provided insights into the nuances of each luxury market and how their overall real estate markets compare to the national trends:

New York, NY saw a swiftly moving market that is seemingly playing catch up to the trends seen around the country, with a staggering 60.5% decrease in median days on market:

New York City has seen a monumental change in market movement, with a 60.5% decrease in a listing’s median days on the market, lowering to 77 days, compared to 195 days in October 2020.
Additionally, the New York City market’s competition for properties has heated up, driving the median sales price up over 15% and surpassing the $1.1 million dollar mark, compared to October 2020.
Demand throughout New York City has caused a reduction of properties on the market, showcased through the number of homes sold increasing by 11.2%, with the inventory of homes for sale decreasing by a massive 30%, compared to October 2020.
“In terms of the luxury market, demand for homes over $4 million dollars is off the charts. Year to date, sales over $4 million have increased by 101.1% over the same time frame in 2020, while sales over $10 million have increased by 91.2%. Buyers in New York City are coming from all over the country, and now from all over the world, with the borders recently opening up,” said EA Stribling Kivlan.

Residential Properties:

Overall Number Of Homes Sold

704 - October 2020

783 - October 2021

+ 11.2% Percent Change Year Over Year

Median Sales Price

$995,000 - October 2020

$1,150,000 - October 2021

+ 15.6% Percent Change Year Over Year

Average Percent Of List Price Received

90% - October 2020

95% - October 2021

+ 5% Percent Change Year Over Year

Median Days On Market

195 - October 2020

77 - October 2021

- 60.5% Percent Change Year Over Year

Inventory Of Homes For Sale

9,724 - October 2020

6,839 - October 2021

- 30% Percent Change Year Over Year

Los Angeles, CA represents a market mo st on trend with the national average, seeing higher prices, low supply, and strong demand:

Los Angeles’ median days on the market ticked up by a day from October 2020, which is unique as most metros are seeing a decrease year over year. This market’s pace is far from slowing, with a median of just 10 days on the market for October 2021.
While Los Angeles listings are spending a bit more time on the market, median sales price has increased boldly by 13.9%, compared to October 2020, and average percent of list price received has increased to 102.1%.
As a result of the fast-moving market and increased demand, Los Angeles’ inventory of listings decreased by 20.8%, compared to active listings at the end of October 2020.
“This year has been the strongest performing year on record for the ultra luxury market in Los Angeles, which has seen an uptick in buyers coming from the San Francisco area whose fortunes were made in the tech and venture capital worlds, now buying both primary and secondary residences in Los Angeles. Just recently, a home in Malibu sold for $177 million, marking the highest ever residential sale for the state,” said EA Stribling-Kivlan.

Single Family Homes:

Overall Number Of Homes Sold

5,490 - October 2020

5,126 - October 2021

- 7.1% Percent Change Year Over Year

Median Sales Price

$745,080 - October 2020

$848,970 - October 2021

+ 13.9% Percent Change Year Over Year

Average Percent Of List Price Received

101.1% - October 2020

102.1% - October 2021

+ 1% Percent Change Year Over Year

Median Days On Market

9 - October 2020

10 - October 2021

+ 11.1% Percent Change Year Over Year

Inventory Of Homes For Sale

7,316 - October 2020

6,056 - October 2021

- 20.8% Percent Change Year Over Year

Miami, FL depicts one of the biggest shortages in housing inventory, decreasing 26% year over year, driving 12.4% fewer sales year over year:

Lowering to 22 days, listings within the Miami market saw a decrease in median days on the market by over 20%, compared to October 2020, falling close to the national average of 18 days for October 2021.
Miami’s median sales price has seen a significant 12.6% jump, compared to October 2020, with the new median sales price climbing to $490,000 and the average percent of list price received inching closer to 100%.
Miami’s listing inventory has shown a major decrease year over year, with the number of active listings at the end of October 2021 down 26%, compared to the end of October 2020, and the overall number of homes sold decreasing 12.4%, compared to October 2020.
“According to local Compass agents, the $10 million and over market has seen an approximately 50% increase year over year. While Miami is often tied to the international market, a majority of 2021 buyers in Miami have come from other major US cities such as New York, Chicago, San Francisco, and Los Angeles, looking to take advantage of Miami’s lifestyle, weather, and tax benefits,” said EA Stribling-Kivlan.

Single Family Homes:

Overall Number Of Homes Sold

1,326 - October 2020

1,161 - October 2021

- 12.4% Percent Change Year Over Year

Median Sales Price

$435,000 - October 2020

$490,000 - October 2021

+ 12.6% Percent Change Year Over Year

Average Percent Of List Price Received

97% - October 2020

98.7% - October 2021