Polarization in US Home Sales... Luxury Homes Sell Better

[Image source= Redfin website]

[Asia Economy Reporter Park Byung-hee] Bloomberg reported on the 2nd (local time) that sales of high-end homes are significantly increasing in the United States. Amid analyses suggesting that COVID-19 is deepening income polarization, home sales are showing a polarization trend.

According to a report by real estate brokerage Redfin, sales of luxury homes from February to April this year increased by 26% compared to the same period last year. Sales of most-affordable homes rose by 18%, and mid-priced home sales increased by 15%.

Redfin explained that by classifying homes into three types based on price levels?high-end, low-end, and mid-range?and examining sales trends, high-end homes are selling more actively.

Transactions are also active in the high-end home market. Listings of luxury homes from February to April increased by 19% compared to the same period last year, while low-end listings rose by 14%, and mid-priced home listings increased by 9%.

Daryl Fairweather, Redfin's chief economist, stated, "So far, the economic recovery has disproportionately benefited those with substantial assets," adding, "Housing demand is coming from wealthier individuals, while low-income groups are being excluded from the housing market due to soaring home prices."

Among the 50 major metropolitan areas in the U.S., luxury home sales have significantly increased in San Francisco, Oakland, and Miami. High-end home sales in San Francisco rose by 82%, while Oakland and Miami saw increases of 72% and 70%, respectively.