By Tim Glaze | Housingwire (Image by Khiem Tran)
Sales of luxury homes rose 41.6% year-over-year in the first quarter of 2021, crushing sales of affordable homes (7% increase) and mid-priced homes (5.9%), per a recent report from Redfin. Redfin defines “luxury” homes as selling for an average of $975,000, “expensive” homes as selling for an average of $429,000, “mid-priced” as selling for an average of $272,000, “affordable” as selling for an average of $184,400, and “most affordable” as selling for an average of $99,000.
The study showcases both sides of the COVID-19 crisis, with affluent Americans taking advantage of low mortgage rates and the ability to work from anywhere, and buying up high-end houses — particularly in popular vacation destinations. Meanwhile, many lower-income Americans have lost their jobs and lack the means to become homeowners.