How Many Homes Are Worth $1 Million?

For most of the past decade, home prices have been rising steadily. A historically low number of homes for sale matched with historically low mortgage rates caused an imbalance in the housing market. Particularly during the pandemic, low rates pushed home buyer demand higher and the competition for available homes led to skyrocketing prices. For home buyers, years of surging home prices can make it feel like every house must now cost $1 million or more. But how many million dollar houses are there really? Well, one recent analysis crunched the numbers and, though the number of million dollar homes has definitely jumped since the pandemic, it’s beginning to cool off. In fact, the share of single-family homes worth more than $1 million fell from an all-time high of 8.6 percent one year ago down to 8 percent now. In 41 of the 99 most populous metro areas, the number of million-dollar homes has fallen and, in the 55 metros where it’s risen, the increase was less than one percent. Whether the trend continues is anyone’s guess but, for now at least, the number of million dollar homes is actually on the decline. (source)

Comments are closed.