The move-up, second-time move-up, and high-end markets were the early movers in housing's recovery, starting in 2014 and continuing strong through the end of last year. Discretionary buyers were the first of the "pent-up" market to weary of downturn fatigue and move fast while prices came off their lows but offered a lot of value to the buyer. Now, not so much.
This Forbes report--originating from Zillow, notes that although the rich get richer, the asset value of their real estate may not be keeping pace with their wealth holdings, nor even with the appreciation of lower tiers of the residential market. Here's the smoking-gun data point:
Nationwide, the median home value in middle-market ZIP codes rose 5 percent in 2015, just above the 4.7 percent increase of median home values in entry-level neighborhoods. But home values in the wealthiest neighborhoods increased just 3.3 percent in 2015, lower than the overall growth of 4 percent in U.S. home values.