The sales price of luxury homes kept pace with the overall Long Island housing market at the end of last year, according to a new fourth quarter report by Douglas Elliman Real Estate.
In the luxury market -- which represents the top 10 percent of all transactions on the Island, excluding the East End, meaning a starting price of $755,000 -- the median sales price went up 3.3 percent, from $965,000 in the last three months of 2012 to $997,000 during the same time period last year.
“That’s almost the exact same pace as we saw for all of Long Island .?.?. where it went up 2.9 percent,” says Jonathan Miller, chief executive of Manhattan appraisal firm Miller Samuel, which produced the report in conjunction with Douglas Elliman.
Sales were also up nearly 32 percent, with 597 luxury sales in the fourth quarter of last year, versus 453 sales in the fourth quarter of 2012.
“The luxury market has fluctuated,” Miller says. “It was a lot weaker in the beginning of the downturn and has essentially caught up, and it’s been bouncing between parity with the overall market and outperforming the overall market.”
What is surprising, Miller says, is that prices have not risen rapidly to reflect a nearly 12 percent drop in inventory.
“We’re not seeing rapid price growth to match lack of supply,” Miller says.
On Nassau County’s North Shore, which represents a good chunk of the luxury market, the median sales price was up 3.7 percent, from $718,000 at the end of 2012 to $745,000 at the end of last year. Sales were up about 27 percent in the last quarter of 2013 compared to the same time last year, according to Elliman’s report. In the last three months of 2013 there were 674 sales on the North Shore, up from 530 sales during the same time in the previous year.