Concierge Auctions
How Long Does It Take for a Luxury Property to Sell and What Really Happens at the Upper End of the Market?

How Long Does It Take for a Luxury Property to Sell and What Really Happens at the Upper End of the Market?

May 15, 2018

This year, our research team spent weeks tabulating and analyzing the top 10 sales* across 40 of the most active luxury markets in the United States to determine what really happens at the upper end of the market. This is the second year we have produced our "Luxury Homes Days On Market Index", and our findings about how each individual market functions has become a vital resource for us and our clients. 

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Concierge Auctions 2018 "Luxury Homes Days On Market Index"

The luxury market is quite different than the rest of the real estate landscape. In the overall market, national averages for Days On Market have trended downward in the last several years, mostly due to decreases in inventory. This trend has continued even as prices have continued to rise. The lack of inventory has created an anxious mindset that causes people to consider a real estate purchase with urgency. In fact, research from Redfin showed that in 2017 as many as 35 percent of buyers made an offer without seeing a property first.

Luxury inventory has remained fairly high in most markets partly because these properties take longer to transact. There is a smaller pool of potential buyers and it’s known that these homes can stay on the market for over a year or more. Individuals in the market for these properties may feel like they can take their time.

In fact, our research showed that the average total Days On Market for these properties has remained over 500 days for the last three years. While this year’s number was down slightly from previous years, that’s well over one year, which can be a lot of time to carry a property that you are ready to part with. The amount of homes in the highest echelon of the market that sell in under 180 days has dropped by 12% since 2015. In all 40 markets, the average Days On Market was 531 days and only two markets had an average Days On Market under 180 days. In some markets, it can take over 1,000 days to sell a home.

To deliver a true picture of the market, our team looked not just at the most recent listing, but also at how many times a property has been on and off the market, often with a price reduction each time. This process can create a downward cycle of diminished perceived value.

To see how your market ranks and receive a copy of the full report, please call 917.284.6023.

* In the following markets and years, the top nine sales of the year were analyzed: Malibu (2015), Miami (2015), Aspen (2015), Dallas (2015), Greenwich (2015 & 2016), and Telluride (2017). 2. Fairfield County, CT excludes Greenwich, CT. See Greenwich, CT market for stats.