August 29, 2024 archive. The national luxury discussion brought together three different measures: the share of homes valued at $1 million or more, luxury median sale prices and sales volume. They should not be read as interchangeable evidence of more Telluride listings or a guaranteed investment opportunity.
The original graph, attributed to Redfin and the Wall Street Journal, plots the percentage of homes valued at $1 million or more from 2014 into 2024. Its final labeled value is 8.47%. Redfin’s August 16, 2024 release rounded the national share to 8.5%. A share of homes with an estimated value above a threshold is not a count of homes listed for sale. It can rise as existing properties cross that value threshold.
Redfin’s July 25, 2024 analysis reported a second-quarter U.S. luxury median sale price of $1,180,000, up 8.8% year over year, rounded to 9% in the original article. Median is the middle sale price, not the average value of all luxury homes.
Redfin defined luxury as the top 5% of properties in each metro by estimated market value, using June 2024 estimates. Its quarterly sale-price measure is separate from the million-dollar share above. Neither provides a Telluride-only series or measures the resale gain on the same home.
The Institute for Luxury Home Marketing’s August 2024 commentary described year-to-date sales-volume growth through July of 14.82% for single-family homes and 11.35% for attached homes, compared with the same 2023 period in its covered North American luxury markets. These are sales-volume changes, not rates of property appreciation or investment return. The Institute’s coverage and definitions differ from Redfin’s.
Views, smart-home systems, modern kitchens, high-end appliances, privacy, security and amenities can matter to a buyer. Compare their actual condition and usefulness in each home, along with access, maintenance and association obligations. A million-dollar asking price does not by itself establish quality or value, and it is not a universal local definition of luxury.
For an investment assessment, compare relevant closed sales and active listings, then account for financing, taxes, insurance, upkeep, transaction costs and the intended holding period. Test the effect of a lower future sale price. Historical national price growth and a change in sales volume do not establish what a Telluride property will earn.
For a review of comparable sales, competing listings and the practical details of a Telluride or Mountain Village property, contact Anne-Britt Ostlund at Mountain Rose Realty.