The appetite for high-end single-family homes is surging across the U.S., according to a report Thursday from real estate data provider HouseCanary.
Between the start of the coronavirus pandemic in March and the end of November, the number of single-family detached homes priced above $1 million to have entered contract jumped 28.8% compared to the same period last year.
The increasing popularity for luxury homes was followed closely by those priced between $600,000 and $1 million, which have seen their contract numbers increase 26.3% over the same time, the report said.
On the flip side, single-family homes priced below $200,000 have seen contracts fall by 13.7% compared to last year.
The data underlines the increasing desire for buyers to upgrade to larger homes with more amenities. Now spending more time at home and frequently working remotely, homeowners are realizing they’re in need of more square footage, home offices and outdoor space, features that often come with a steeper price tag.
Despite their surging popularity, $1 million-plus home sales only represent a fraction of the overall market, with most contracts being recorded on homes in the $200,000 to $400,000 range, according to the report.
“We anticipate that the housing market will maintain the status quo through year-end, but there is strong potential for a significant shift in the new year,” Jeremy Sicklick, co-founder and CEO of HouseCanary, said in the report, pointing toward the transition of White House leadership and Congressional appointment decisions.
“For now, outsized demand from home buyers is motivating sellers to maintain active listings and pushing prices on closed listings to record highs across the country,” he said. “Despite a turbulent election and a seasonal slowing of housing market activity, elevated demand levels continue to drive the housing market’s recovery and have largely offset the steep drop-off in new listings, contracts and closures observed recently.”