Here are some key points from the recent TARR Housing Market Report on Luxury Homes, which compared the third quarter of 2013 to the third quarter of 2012:

What happened with luxury home closings?
Year to date closings were up 40%, quarterly closings were up 41%, new home closings were up 63% and resale closings were up 34%. There were 35 closings sold at 1 million and above during the quarter, compared to 25 in 3Q/12. The months of supply of luxury homes based on quarterly closings is 7 months, compared to the 9 month supply at the end of 3Q/12.

How long are luxury houses taking to sell?
The average days on market for all luxury houses was 106, compared to 144 during 3Q/12.

Is initial list price important in the luxury segment?
As with any other segment in our market, the correct initial pricing of a listing is very important. Quarterly closings where the original list price was equal to the final list price sold in an average of 78 days at 98% of list. Quarterly closings where the original list price was higher than the final list price sold in an average of 184 days at 94% of original list.

By: Stacey P. Anfindsen with S.M.A Publications, Inc.