If luxury living means having a mansion close to the sea, then it’s time to head to Santa Monica, California, a city that has seen the steepest rise in luxury home prices over the past one year according to a study by Realtor.com.
The study looked at luxury markets across the country to determine where the prices for luxury homes were rising the fastest and which were the slowest markets for luxury home appreciation. To determine these markets, the Realtor team pulled housing data for over 600 ZIP codes where a median home listing price was above $1million between April 2016 and March 2017. The data was then compared to the previous year to see which ZIP codes saw the largest median price increases and declines. The list was limited to two ZIP codes per state for geographical diversity.
With a median home list price of more than $3 million and a 60.7 percent increase in median home prices over a year, 90401 in Santa Monica, California emerged as the priciest market for luxury homes. The ZIP code which is a part of the downtown neighborhood of the city and stretches along a swathe of Santa Monica’s beach boasts of condos ranging from $1.9 million to almost $4.8 million.
Second on the list was 02465 in West Newton, Massachusetts, which is just outside Boston. With a median home list price of $2.2 million and a 60.4 percent increase in median home prices over the past one year, this upscale suburb boasts homes that are priced between $525,000 and $2 million.
How can Silicon Valley not get a mention when speaking of luxury markets? At No. 3 Palo Alto, California has some of the newest multi-million dollar mansions with ZIP code 94301 leading the way with median listed home prices at $5.6 million and a 59.1 percent rise in median home prices through the year.
Other cities with ZIP codes that saw some of the fastest price increases in luxury living included, Katskill Bay, New York; Seattle, Washington; Bellevue, Washington; Lower East Side Manhattan in New York, New York; Aspen, Colorado; Kilauea, Hawaii; and North Chatham, Massachusetts.
Conversely, some of the best-known luxury markets saw home prices drop during the year, and leading this list was 10004 in New York, New York where prices fell 35.6 percent to $1.2 million over the past year. Beverly Hills, California was another big name that saw a decrease in prices that dropped 28.2 percent to $1.4 million. Other cities with ZIP codes that saw a drop in prices included Laie, Hawaii; Denver, Colorado; Bedford Hills, New York; Paia, Hawaii; and Somerset, Colorado.