A recent Zillow report is showing that with sales up and values up during the pandemic real estate boom, more homes are selling for over the $1 million mark. The report also detailed that the typical million-dollar home looks a lot different than it did heading into the pandemic.
Zillow’s report stated: “Single-family homes in the million-dollar range that sold in the second quarter of 2022 are noticeably different from homes that sold in the same price range in the years preceding the COVID-19 pandemic. Today’s million-dollar homes have undergone shrinkflation, possessing a much smaller footprint than the million-dollar homes of 2019. They also have fewer bathrooms and are older overall.”
A few highlights of the report are:
The report raised the question—if overall home sales have fallen, why haven’t home sales fallen in the $1 million or more range? Zillow’s answer is: “First, higher home prices naturally means more homes, regardless of size, were pushed into the $1 million club. Second, those with means to buy a home for more than $1 million may be less sensitive to rising prices.”
Locally in Worcester County, homes surpassing the $1 million mark represent a little more then 12% of current residential inventory. For some comparison of how the $1 million+ home market is growing here is year-over-year breakdown for Worcester County: 2019=16 homes sold; 2020=30 homes sold; 2021=84 homes sold; and, year-to-date for 2022=52 homes sold surpassing the $1 million mark.
Lauren Bunting is the Broker of Record for Keller Williams Realty of Delmarva in Ocean City, Maryland.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.