CNBC’s Diana Olick reports that early 2016’s volatile stock market has impacted luxury home sales in some parts of the country, as the bulk of a high-income family’s equity is often tied up in stocks, according to CoreLogic chief economist Sam Khater.
In metro hotspots where the local economies are significantly tied to financial markets—like New York City and San Francisco—sales of luxury homes have weakened, while supply continues to rise.
That jump in inventory will likely affect prices down the road, as supply outstrips demand. Nationally there was a 9.3-month supply of homes listed at $1 million or above in December 2014, but that increased to 13 months by December 2015, according to CoreLogic. "With more than a year's supply of inventory, prices, for the most part, won't be increasing," Khater said.