Luxury Home Sales Surge 42% in the Third Quarter as Sales of Affordable Homes Falter, Highlighting the Pandemic’s Uneven Impact on Americans With Less Wealth
October 12, 2020 | Lily Katz | Redfin
A relative abundance of expensive homes is supporting sales at the high end and giving luxury homebuyers plenty of options to choose from. Meanwhile, sales of affordable homes are slowing amid a supply shortage that’s posing challenges for first-time buyers.
U.S. luxury home sales increased 41.5% year over year in the third quarter, the largest jump since at least 2013, when Redfin began recording this data. Meanwhile, sales of medium-priced homes climbed just 3%, and sales of affordable homes declined 4.2%, underscoring the coronavirus pandemic’s disparate impact on Americans with lower levels of wealth.