The Riviera real estate market in the first half of 2019 has reached an all-time high with a median price of $2,100,000! To put this in perspective the only other year that the median price breached the $2 million mark was in 2016, however this was followed by two years of slight decreases. Furthermore, this pinnacle price point is not only 10% above last year’s median price – it is a 12% increase from the last market peak in 2007. The other encouraging news is that the number of sales is continuing to keep pace with the last 3 years which have all been very robust markets.
Looking back at my 2018 year end analysis I stated that I had high expectations for 2019 because the market was more balanced and there were indications that the higher end properties were starting to move. After a more detailed analysis of the data, it is apparent that these two dynamics have definitely occurred. The properties that sold in the $1 to $2 million range lingered on the market longer than normal and many had price reductions before selling which suggests that the market is much more balanced in this range than it has been the last few years. On the other end of the spectrum there were 12 sales over $3 million in the first 6 months of 2019 compared to just 8 sales in that range for the entire year in 2018. These numbers indicate that the upper end of the market is experiencing a resurgence. In fact, there has been 3 more sales in this range within the last several weeks as well.
As the summer season transitions into the typically busy fall market I don’t expect the current trends to change. Interest rates have dropped recently which usually invigorates the lower end sales, however that may be counterbalanced by sentiments in some circles about a slowdown in the economy. At this point, as I mentioned above, the higher end sales appear to be continuing at a solid pace. I have recently heard some economists use the term “Goldilocks economy” meaning that our current economic conditions are not too hot or too cold. I think this is the perfect description of the current Riviera real estate market as well and one that homeowners who are considering selling in the near future should take advantage of.