The market for luxury homes continues to outperform the general market. Sales of homes priced $1 million and above grew by 16.2 percent year-over-year in October. Comparatively, overall home sales rose only about 4.7 percent year over year according to the National Association of Realtors.
The inventory levels of high-end homes fell to a 10.6 month supply from a 12.1 month supply one year earlier. The supply of high-end homes still dwarfs lower priced homes, where the inventory levels rose from a 4.9 month supply to a 5.1 month supply over the last year. A 6 month supply is generally considered balanced between buyers and sellers.
So, while the high-end home market is improving, it still has inventory levels favoring buyers. It also had the longest way to come back after the housing crash.