Luxury home sales outpaced the growth of sales in affordable homes, which a Redfin economist said was another example of wealth inequality in America.
While affordable home sales grew by seven percent, luxury home sales grew by over 60 percent year-by-year during the three-month period ending Nov. 30. Redfin said it was the biggest jump since at least 2013.
Mid-priced homes grew by 14.8 percent in the same period.
“Low- and middle-income Americans aren’t out of the woods when it comes to this recession. Affluent Americans are out of the woods, and they’re at their beach houses sipping margaritas,” Redfin Chief Economist Daryl Fairweather said in a release. “When times are tough, banks are most likely to dole out home loans to the people who need them the least.”
Demand for second homes grew 100 percent year-over-year, while primary home demand only grew by 50 percent.
The growth in demand has resulted in an increase in the price growth. Luxury price growth has caught up to affordable price growth as a result of increasing competition in the luxury market, Fairweather said.