Luxury sales in December more than doubled the amount sold the previous year skewing average prices to their highest December price point ever.
A total of 39 homes (36 single family & 3 condos) sold for a million dollars or more in December, an increase of 129% year-over-year.
By year-end, luxury sales had jumped 22% from 2011’s total to set an all-time record: 544 sales. This surpassed the previous record set in 2007 by nearly 19%.
What impact did these luxury sales have on the rest of the market in terms of price statistics?
The average price for Condominium-Apartments in December was $304,421, an increase of over $34,358 or 12.7% y/y. That’s the highest December average recorded, even up $15,316 (5.3%) from December ’07.
I am pleased CREB commented on this matter in the December report:
“The average price increase is misleading, as there were several multimillion-dollar condominium sales in 2012 that skewed figures up. With more sales occurring at the higher end of the spectrum, average and median prices are trending higher than the benchmark, which represents price growth for the same type of property.”
The benchmark price for December 2012 was $248,700, up a much more reasonable $12,700 year-over-year (5.3%).
However, December’s benchmark is still down -$30,700 (-10.9%) from December 2007 and down -16.3% from peak levels showing us the condominium market still is a long ways off from being fully recovered.
Single family homes also set a new record for December average prices: $496,636. In December 2007 the average was $443,022.
Obviously prices haven’t risen $53,000+ or 12% since then. The benchmark tells us that prices are up only $9,000 (2%) since 5 years ago.
Yet, the benchmark price in December was still below the peak level set in July 2007 by -$16,500 (-3.7%)
Comparing peak benchmark prices to December prices shows us that the single family segment has recovered to a fuller extent than condominiums – but the key point is that it’s recovering and still hasn’t surpassed boom level pricing.
Here’s hoping the slow road to recovery carries on in 2013.