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52 | TH E M R EP O RT ARE YOU LOOKING FOR A BEST IN CLASS SOLUTION TO AVOID... • Missed Parcel • Late Payments • Costly Penalties/Interest • Tax or HOA Liens • Foreclosed Properties • Tax Sales • Missed Flood Zone Coverage • Compliance Issues TIRED OF DEALING WITH ISSUES THAT ARISE WHEN SERVICING YOUR REAL ESTATE PORTFOLIO? 130 S Jefferson Street, Suite 300 Chicago, IL 60661 1.888.627.5494 Sales@NationalTaxSearch.com www.nationaltaxsearch.com THE LATEST In the Lap of Luxury Lately, exclusive accoutrements aren't the only extras adorning high-end homes. Bloated price tags are also part of the package. H ome prices are rising across the board due to lack of inventory and other factors; however, luxury homes may be feeling the pain—or excite - ment if they're trying to sell—a little bit more. According to a recent report by Redfin, luxury home prices have risen 7.5 percent in the second quarter for 2017 compared to Q2 2016. This is an average of $1.79 million based on 1,000 cities across the U.S. Redfin defines the luxury market as the top 5 percent most expensive homes in a city in each quarter. To put this in perspective, the average non- luxury home came in at $336,000, up 7 per - cent compared to last year and for the first time since the fourth quarter of 2014, luxury homes beat homes in the lower 95 percent in home price growth. "The housing shortage is now affecting the top of the housing market," said Redfin Chief Economist Nela Richardson. "After five consecutive quarters of double-digit inventory growth, the number of million-dollar-plus homes for sale dropped by 9.4 percent. Yet despite the strong uptick in prices, the luxury market is not nearly as competitive as the rest of the market. Only one in 50 luxury homes sold above list price in the second quarter, compared to more than one in four homes in the bottom 95 percent." According to Redfin, this increase could be because of the drop in the number of luxury homes on the market. Homes prices at or above $1 million decreased 9.4 percent in comparison to last year. Homes at or above $5 million saw a decline as well—9.5 percent. The strongest city in the U.S. for luxury price growth is Irvine, California. The aver - age growth in this luxury city came in at 37.4 percent compared to last year. Undersupplied and Overheated Although demand for homes outpaces their supply, low mortgage rates are helping keep prices from melting consumers' pocketbooks, report says. A t the epicenter of the housing cri- sis was the underwater borrower, a byproduct of unrealistic price points and an overheated housing market. Now, according to recent Zillow data, some markets are overheating once more. Zillow's Home Value Index (ZHVI) takes the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, con - dominiums, and cooperatives—even if they haven't been sold—on a seasonally adjusted basis. According to Zillow's ZHVI, some markets are overheating. In the U.S., the median ZHVI is $200,700, compared to its pre-recession bubble peak of $196,600. Denver, the No. 1 inflated market, sits at a ZHVI of $371,100 against a bubble peak of $235,900. This is 57.3 percent above the mark. "More than 48 percent of individual homes nationwide are currently worth more than they were prior to the onset of the Great Recession," the report cited. "In Denver, 99.5 percent of homes are worth more now than during the peak of the housing bubble." In terms of overheating markets, the Dallas- Fort Worth MSA is the second most overheated market in the U.S. and is 42 percent above its pre-recession peak, a ZHVI of $212,500 com - pared to a bubble peak of $149,600. "Home values are high, but affordability— while suffering a bit lately—is still OK, largely because of very low mortgage interest rates helping to keep monthly mortgage payments in check," said Zillow Chief Economist Dr. Svenja Gudell. "The more pressing issue is abnormally low inventory, which is translat - ing into an extremely competitive environ- ment for home shoppers."