Listen to article \u2022\u00a00:00 min<\/p>\n
Luxury homes in the Philadelphia area sold faster this spring than the overall market\u2019s already fast pace, even as the minimum price to be considered a luxury sale hit a record high.<\/p>\n
Strong demand for luxury homes is outpacing supply in the Philadelphia metropolitan area, which is helping boost prices.<\/p>\n
The multiple listing service Bright MLS<\/a> defines luxury homes as those sold for prices in the top 5% of the market. In the Philadelphia area this spring, that meant homes that sold for at least $1.15 million. That price is 7.5% higher than at the same time last year, according to Bright MLS.<\/p>\n An \u2018accelerating\u2019 luxury market<\/p>\n In the Philadelphia region, the luxury market is \u201caccelerating,\u201d with homes selling quickly, said Lisa Sturtevant, chief economist at Bright MLS. In the second quarter of the year, half of the luxury homes for sale in the region sold in six days or less, compared to 11 days or less for homes overall.<\/p>\n Across the Mid-Atlantic, one-third of luxury homes sold this spring were paid for with cash. The Philadelphia area had a higher share of all-cash luxury sales \u2014 42%. In comparison, 24% of all spring home sales in the Philadelphia region were cash sales.<\/p>\n Sturtevant predicts that the luxury market will continue to be more active than the rest of the market for the second half of 2026.<\/p>\n Main Line community and Shore town are among top luxury zip codes<\/p>\n Two local zip codes ranked in the 10 areas in the Mid-Atlantic with the highest shares of luxury home sales this spring, according to Bright MLS.<\/p>\n In the Wayne<\/a> area\u2019s 19087 zip code, 37 of 88 home sales classified as luxury sales \u2014 roughly two in five sales.<\/p>\n Down the Shore in Long Beach Island\u2019s 08008 zip code, 34 of 36 home sales were luxury sales.<\/p>\n Demand for luxury<\/p>\n Luxury home buyers are less deterred by elevated mortgage interest rates<\/a> and rising prices than entry-level and mid-market buyers. And gains in the stock market have helped boost luxury buyers\u2019 purchasing power and demand for homes.<\/p>\n The number of new pending luxury sales rose in the second quarter of the year in the Philadelphia region. They were up roughly 9% from the same time last year to a total of 1,056. <\/p>\n More luxury homeowners in the Philadelphia area listed their homes for sale in the second quarter of the year than during the same time last year. The number of new luxury listings \u2014 1,647 \u2014 increased by about 4%. <\/p>\n But the Philadelphia region doesn\u2019t have enough luxury homes for sale to meet the demand from buyers. The number of active luxury listings \u2014 1,102 \u2014 was down almost 5% at the end of the second quarter compared to the same time last year.<\/p>\n The number of closed luxury sales this spring \u2014 889 \u2014 was relatively flat from the same time last year. Sales ticked up 0.5%.<\/p>\n The number of sales would be higher if more luxury homes were on the market, Sturtevant said.<\/p>\n \u201cUnlike the entry-level and mid-market homeowners, luxury homeowners are not as likely to need to move in response to changing family or financial circumstances,\u201d she said in a statement. \u201cAnd right now, luxury homeowners, by and large, are not exercising their discretion to sell.\u201d<\/p>\n A stalled market for starter homes<\/p>\n While luxury homes sold quickly and at a premium this spring, at the other end of the housing market, starter homes lingered.<\/p>\n In June, the number of starter homes for sale in the Philadelphia area was up 14% from the same time last year, according to an analysis by Zillow<\/a>. And sellers cut prices in a quarter of these listings that month.<\/p>\n The number of starter homes sold in May was down almost 7% from the year before.<\/p>\n Zillow considers starter homes to be those in the 5th to 35th percentile of home values.<\/p>\n