The current outlook for luxury housing in the U.S. is looking bleak, writes Joshua Steiner for Fortune.
Steiner points to one community that he says is a microcosm for wealthy communities nationwide – Greenwich, Conn., home to some of the richest people and most expensive homes in the world.
Greenwich’s housing market is in deep trouble. As you can see in the numbers below, there’s a staggering amount of houses sitting on the market. Here’s the breakdown by home price category:
· $3 million to $4 million: 17 months of supply which has risen 38% over the past year
· $4 million to $5 million: 22 months of supply, +35% over the past year
· $5 million to $10 million: 48 months of supply, +108% over the past year
· Greater than $10 million: 128 months of supply, +63% over the past year
To put that last bullet into perspective, at 128 months, that’s almost 13 years of supply.
What do these numbers mean for luxury home builders?