In-Depth Look: October 2024 Trends in the Luxury Real Estate Market

$1-3M Inventory: A Gradual Increase

Inventory in the $1-3M market is on a steady rise, with 2% more homes available compared to last month and 33% more homes on the market than in October 2023. This inventory increase provides current buyers with more choices, though it could also signal the need for sellers to adopt competitive strategies to capture buyer interest amid growing options.

$1-3M New Listings: Slight Drop

New listings in the $1-3M segment have seen a slight month-over-month decline, but remain higher than last year. 5% fewer new listings compared to September 2024. 34% more new listings compared to October 2023. While the dip in new listings may ease competition among sellers in the short term, the year-over-year surge still creates an overall supply boost, which may impact pricing strategies.

$1-3M Closings: Monthly Decline, Annual Growth

Closings in the $1-3M market show mixed signals: 17% fewer homes sold than last month, indicating a possible seasonal slowdown or a response to rising inventory. 10% more closings than in October 2023, suggesting overall demand remains strong year-over-year. For sellers, the monthly decline points to potential hesitation among buyers, possibly influenced by inventory levels or recent price trends. Buyers, however, may see this as an opportunity to negotiate more favorable terms.

$1-3M Sales Prices: Monthly Drop, Annual Increase

Pricing has taken an interesting turn, with month-over-month drops but a steady annual increase: The median sales price fell by 11% compared to last month. However, it is 5% higher than October 2023. This suggests that while prices have adjusted downwards recently — potentially due to increased competition or buyer caution — they remain strong compared to last year. Sellers may need to be more flexible on price to align with the current month’s downward pressure, while buyers could find opportunities to secure properties at slightly reduced prices.

Key Takeaways for $1-3M Buyers and Sellers

The $1-3M real estate market in October 2024 reflects a balancing act between demand and supply, with inventory and new listings growing while prices and closings experience short-term fluctuations. For both buyers and sellers, staying attuned to monthly and annual trends will be crucial in navigating this active segment of the luxury real estate market.

$3-5M Inventory: Steady Growth Year-Over-Year

Inventory in the $3-5M market has continued to grow, indicating more opportunities for buyers to explore while adding competitive pressure for sellers. 1% increase in homes available compared to last month, suggesting a fairly stable market month-over-month. 23% more homes on the market compared to October 2023, pointing to a significant increase in supply year-over-year. For buyers, the growing inventory provides an expanded selection, potentially offering more options and bargaining power. For sellers, it underscores the importance of standing out in a more competitive landscape.

$3-5M New Listings: Monthly Decline, Annual Surge

New inventory in this market segment shows a notable decline month-over-month but remains considerably higher than last year: 13% fewer new listings compared to September 2024, indicating a slight slowdown in fresh listings. 44% more new listings compared to October 2023, illustrating a substantial increase over the past year. This year-over-year increase in new listings adds to the overall inventory growth, giving buyers an advantage with a broader selection. Sellers may need to be strategic in pricing and marketing to attract attention amid the increased choices.

$3-5M Closings: Monthly Drop, Strong Annual Growth

Closings reveal an interesting trend, with a drop in recent activity but a strong recovery compared to the previous year: 44% more homes sold compared to last month, and 117% more closings compared to October 2023, suggesting heightened interest in this price range year-over-year. For sellers, the month-over-month statistics highlight the importance of making properties competitive on both price and presentation. Buyers, on the other hand, may find that fewer sales present an opportunity to negotiate more favorable terms.

$3-5M Sales Prices: Down Month-Over-Month, Up Year-Over-Year

The $3-5M market is seeing a temporary dip in pricing, though values remain strong compared to last year: The median sales price dropped by 8% from last month, possibly influenced by the increase in inventory and competitive conditions. However, the median sales price is up 4% compared to October 2023, indicating a general upward trend over the year. This price shift presents an interesting scenario for both parties. For buyers, the monthly decrease could mean a chance to buy at a relatively favorable price. For sellers, the year-over-year price increase serves as a reassurance of sustained demand, though adapting to short-term conditions may require flexibility.

Key Takeaways for $3-5M Buyers and Sellers

For Buyers: The increased inventory and slight month-over-month dip in sales prices mean more options and potential negotiation power. The short-term trends suggest it’s a good time to look for value in the market, while the long-term appreciation indicates this price range remains desirable. For Sellers: With inventory up and homes taking slightly longer to sell compared to last month, pricing competitively and highlighting unique features of your property will be essential to stand out. However, the positive year-over-year price increase should reassure sellers that demand is still strong, especially as closings remain significantly higher than a year ago. This dynamic landscape in the $3-5M market offers opportunities for both buyers and sellers to make strategic moves based on their needs and timing, while keeping an eye on both month-over-month and year-over-year trends.

$5-10 Available Inventory

In the $5-10M range, inventory levels are on a slight upward trend with 2% more homes on the market compared to last month and a 12% increase from October 2023.

$5-10M New Listings: A Mixed Landscape

However, the addition of new listings has seen a sharp contrast: there was no increase in new listings compared to last month and 21% fewer new listings compared to last year. This decrease in fresh $5-10M inventory may signal hesitancy among potential sellers, perhaps influenced by market conditions or seasonality.

$5-10M Closings Remain Steady

Closings in this price range remained stable month-over-month, with no additional sales compared to last month. However, year-over-year data shows a noticeable shift, with a 300% increase in sales compared to October 2023 (though this translates to a modest increase of one sale). This jump could indicate a gradual resurgence in demand for ultra-luxury properties, even if overall volume remains low.

$5-10M Sales Prices: A Recent Dip but Yearly Stability

Median sales prices in the $5-10M segment have taken a hit recently, with an 18% decline compared to last month. This month-over-month decrease could provide buying opportunities for those seeking value in the luxury sector. On a yearly basis, the median price is only down by 3%, suggesting a relatively stable market over the longer term. For sellers, this data may highlight the importance of competitive pricing to align with current buyer expectations.

Key Takeaways for $5-10M Buyers and Sellers

The recent dip in sales prices and steady inventory growth create an opportune environment for negotiation in the $5-10M market. Buyers may find appealing options and leverage, especially with the slight increase in days on market. Overall, the $5-10M market is balancing on a knife’s edge, with elements that could appeal to both opportunistic buyers and sellers ready to adapt to evolving market conditions.

$10M+ Inventory: Significant Growth in Supply

Inventory in the $10M+ market is experiencing notable expansion, with 8% more homes on the market compared to last month and a dramatic 62% increase from October 2023. This significant growth in supply could signal a rising interest among ultra-high-net-worth homeowners to capitalize on current conditions, whether due to market shifts or personal financial strategies. This increase in available inventory provides a broader range of options for discerning buyers.

$10M+ Significant Growth in New Listings

New listings also reflect an upward trend, with a 75% increase compared to last month and 40% more new listings than at the same time last year. This influx of fresh inventory may be due to high-end sellers taking advantage of a favorable pricing environment, potentially setting the stage for a more competitive market in the near term.

$10M+ Closings: Modest Sales Activity

category. In October, one home sold compared to zero sales the previous month, and year-over-year, closings are flat with one sale recorded in both periods. This limited sales activity reflects the unique buyer pool and the often-lengthy decision-making process associated with purchases at this price level.

$10M+ Pricing Trends: A Robust Increase in Median Sales Price

One of the most striking metrics in the $10M+ market is the 36% increase in the median sales price compared to last year. This impressive rise underscores strong price resilience in the ultra-luxury segment, suggesting that while the market may see relatively few transactions, the value of individual properties remains robust. For sellers, this upward pricing trend is promising, as it indicates a willingness among buyers to pay premium prices for select properties.

Key Takeaways for $10M+ Buyers and Sellers

Overall, the $10M+ market in October 2024 reflects an active environment with growing inventory, resilient pricing, and a steady flow of high-quality listings. As more properties become available, buyers and sellers alike will find opportunities—but success in this market will depend on an understanding of its nuanced dynamics and careful positioning.