Redfin's markets where luxury prices have lost some luster.

Redfin analyst Alina Ptaszynski puts the notion that the high-end residential for-sale real estate market may be looking for a time-out through Redfin's algorithmic data paces. Her findings here aren't necessarily predictive of long-term challenges on the high-end, but do reflect that structurally luxury market sales are not quite as all-important to the recovery as they had been.

And that can be a good thing. Higher volume sales--with increasingly healthy balances between inventory and demand--at the lower end of the price spectrum, are necessary, if recovery is to continue. So,the luxe check-up may be just what the market needs to prod other cylinders into firing properly. Ptaszynski writes:

The luxury market, which we identify as the priciest 5 percent, was shown up by the bottom 95 percent, where prices grew 3.8 percent over the same period. The bottom 95 percent of the market has seen consistent price growth of around 4 percent in each of the past four quarters.

No doubt, the right product in the right location at the right--albeit very high-end--price range is going to be a pocket of exception to the rule. But it also makes sense that until there's more constructive demand and deals for buyers at the low and mid-price tiers of the market, the pull-forward of higher end buyers would have to max out eventually.

Read more >