Across both San Diego and Orange County, a hot luxury real estate market continues, as the luxury home market is the top 10% of all closed sales.
With an average sales price that continues to climb, and 6 out of 10 homes selling above asking price, what used to be considered “luxury” has now been redefined.
Luxury in San Diego County is currently defined as $1.25M but is set to move up to $1.5M in 2022, and it’s currently defined as $1.5M in Orange County but set to move up to $2M in 2022.
Although luxury may be hotter than ever before, it is expected to slow down slightly over the next few months. It takes a little bit longer to sell homes priced above $2 million. We are seeing the real beginnings of price reductions when homes are grossly overpriced. Buyers are wary.
Low-interest rates hover around 3% and continue to feed the market, but as fewer homes enter the fray, expect demand to drop slowly until Thanksgiving and reach its lowest levels at the end of 2021.