Uncertainty around the election spooked wealthy home buyers in the fourth quarter, continuing 2016's slowdown in luxury real estate, according to several new reports. However this is not the trend in Birmingham; luxury home sales were up by 49% over prior year (82 sales in 2016/ 55 sales in 2015)
Separate research from Redfin found that luxury properties nationwide under-performed the broader housing market for the eighth consecutive quarter. The supply of homes priced at $1 million or more rose 1 percent in the fourth quarter, while the number of $5 million-plus homes was up 15 percent. Again, Birmingham beat the national trend with an increase in $1 million homes offered for sale by 3% from 2015 with the largest increase in Mountain brook where the supply rose by 21%.
"The Trump rally in the stock market did little to move prices in luxury real estate," Redfin's chief economist Nela Richardson said. "Cities with booming luxury markets attracted traditional high-income buyers seeking a place to live, work and grow their families. Prices in cities with more transient luxury buyers, looking for investments or a place to park their wealth, had more tepid growth to close out 2016."
In Birmingham, the number of total sales rose 49% percent compared with prior year. (82 vs 55) However, the average sale price was down 9 percent, to $1.3 million. The largest decrease was in the sale price was in the Vestavia/ Liberty Park area with a decrease in average sale price of 32% from $1.8 million to $1.2 million.