The general housing market is not the only one facing a housing shortage and rising home prices. Several luxury markets are now seeing prices skyrocket too from the limited number of homes for sale. Reno, Nev., is seeing some of the fastest price growth in the U.S. in its luxury market, according to newly released realtor.com® data.
In the Reno metro area, the average sales price of a luxury home has surged 53.3 percent in February compared to a year ago. The average sales price of a luxury home in Reno is $1.11 million compared to $724,375 a year ago. A luxury home is defined as the top 5 percent of the market. Further, high-end homes are selling 13 percent faster than a year ago, according to realtor.com®’s data.
Reno is experiencing a job boom; it added 30,000 jobs since 2015. Yet, housing development has failed to keep pace with its population growth.
Overall, nearly two thirds of U.S. metro areas have posted listing price increases in the top 5 percent of their markets, according to realtor.com®.
Other metro areas with some of the greatest price growth in the past year include Honolulu and Kahului, Hawaii; Seattle; Naples, Fla.; Riverside, San Jose, and San Luis Obispo, Calif.; Barnstable, Mass.; and Sarasota, Fla. In Seattle, for example, the average sales price has risen 14.2 percent in February compared to a year ago.
Source: “Reno, Nevada, Luxury Prices Soar Amid General Housing Shortage,” Mansion Global (May 10, 2018)
