The economic woes of the world sat heavily on the shoulders of housing's high-end market across the span of 2016's first quarter. Sale prices for luxury homes nudged back 1%, reversing mojo, even as the volume of sales in the upper tiers chugged along.
Redfin analyst Alina Ptaszynski has a look at the online residential real estate broker's latest data upload, which indicates that while the 95% of homes in the mid- to lower-price tiers of the market sold at an increase of 4.7%, the top 5% in price slipped back a notch. Ptaszynski writes:
Luxury home sales were solid, up 6 percent compared to a year ago. The number of homes for sale priced above $1 million increased 3.3 percent from a year prior, with homes priced above $5 million up 13.2 percent. These numbers on existing homes may actually understate overall luxury inventory as builders continue to bet on luxury in some cities, building extravagant homes on ‘spec,’ or without have a buyer lined up in advance.