High-end home sales were on the rise, though that might soon change - The MG Group | Chicago Real Estate

Img

The luxury housing market enjoyed a strong end of 2019, according to new research from REALTOR.com.

According to the report, million-dollar U.S. home sales rose 11.4 percent in the fourth quarter compared with the same quarter a year earlier. The report said that the entry point for luxury homes rose to $1.27 million, a jump of 2.1 percent from the same quarter a year earlier.

That’s all good news. But as the National Association of REALTORS says, that might be changing soon. It’s hard to write about anything real estate-related without taking COVID-19 into account. Now Americans across the country are being asked to shelter-in-place, meaning that they’re supposed to spend most of their time inside their homes.

You can expect, then, the sales of luxury homes, and all housing types, to fall during the rest of this month and throughout what looks to be a challenging April. That includes the Chicago area, of course, where Mayor Lori Lightfoot and Illinois Gov. J.B. Pritzker have instituted their own shelter-in-place policies.

Still, the increase in luxury home sale was nice while it lasted. According to the association, the volume of luxury home sales rose in 59 of 78 tracked markets in the fourth quarter.

Selling luxury homes has always been more of a challenge. The higher price point means that there are fewer potential buyers for these properties. Owners must work closely with REALTORS to develop a strong marketing message and promote these properties to the right potential buyers.

Dealing with the COVID-19 pandemic will make the task of moving these higher-end homes even more challenging. The key, as always, is to work with a skilled REALTOR who knows your neighborhood. The help of these professionals is even more important now.