More evidence of a bifurcated housing market: used McMansions and other expensive homes are selling just fine.
One way to look at the breakdown of home sales by price range: Used McMansions seem to be selling quickly.
While the rate of sales growth in January for existing-home sales was 3.2% from January 2014 levels, it was 13% in the $750,000–to–$1 million range, according to National Association of Realtors data released Monday. A “McMansion” is a pejorative term for relatively ostentatious and newer-construction homes targeting the upper middle class.
That’s the fastest growth of any price range, and comes after 10.4% growth for that segment in December.
“It’s a reflection of the U.S. economy where the upper end has done much better in this recovery in terms of income,” said Lawrence Yun, chief economist of the NAR.
Two quick thoughts:
1. Just because a home in this price range does not mean it is a McMansion. The data seems to be based only on price, not on year of construction or location of the home or size and design. Even with the definition of McMansion provided, I’m not sure why the term is applied here as it is misleading.
2. One of the critiques of McMansions is that they are poorly made and won’t last. Yet, data like this suggests such homes (even if mislabeled) can make it through at least one buying and selling cycle. Might many McMansions simply be like many other homes and last for decades?