By Redfin, Special for USDR
Redfin (www.redfin.com), the next-generation real estate brokerage, conducted a study of Donald Trump-branded condos to determine if their market performance has changed since his political campaign began. Redfin built a model that analyzed a sample of Trump condo sales and sales of nearby similar units, controlling for location, size, number of bedrooms and other factors.
Comparing the first five months of 2015, before Trump announced his candidacy, to the first five months of 2016, Redfin found:
- In 2015, Trump units had a sale price premium of 6.8 percent compared with similar homes. In 2016, Trump units no longer exhibited a sale price premium.
- Looking at prices on a per-square-foot basis, Trump units sold at a premium of 9 percent or $97 compared with similar units in 2015. In 2016, the effect became insignificant.
- In 2015, Trump condos asked for 1.6 percent more than they eventually sold for compared to similar homes. In 2016, there was no significant difference.
- In 2015, Trump units spent 10 more days on the market than comparable homes. In 2016, the effect was little changed, with Trump homes spending nine more days on the market than similar homes.
“Trump condos have lost the price advantage they enjoyed before the campaign and are starting to sell similarly to comparable condos. While it’s tempting to blame politics, it’s likely that market conditions have changed, making it harder for uber-luxurious condos to fetch top dollar,” said Redfin chief economist Nela Richardson. “The luxury market has been fighting a chill since late last year and even the gold-plated faucets in Trump’s bathrooms can’t overcome a slowdown in demand from wealthy buyers caused by the rocky global markets in 2016.”
Note: Redfin’s analysis was limited to sales in Hollywood Beach, FL; Sunny Isles Beach, FL; Honolulu, HI; Chicago, IL; Las Vegas, NV; Jersey City, NJ; New Rochelle, NY; Shrub Oak, NY; and White Plains, NY. Multiple-listing data was unavailable for transactions of Trump properties in Manhattan; Stamford, CT; and outside of the U.S.
To read the full report and methodology, please visit: https://www.redfin.com/blog/2016/07/have-trump-condos-lost-their-luster-this-election- year.html
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the customer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the industry’s most accurate home-value estimate, the Redfin Estimate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commission. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $31 billion in home sales, and saved customers more than $335 million in fees, and counting.