The luxury housing market witnessed its first drop in home prices in three years, sending a potential sign that home prices might start to slow down across the housing market, the latest Redfin luxury home price report said.

The online real estate brokerage explained that a decline in luxury values could indicate that wealthy buyers and foreign investors are stepping out due to volatility in the global markets and fears that prices have climbed too high, too quickly.

It also added that a bigger supply of luxury products might also be pushing prices down.

According to the report, home prices in the luxury market fell 2.2% year over year, while prices in the rest of the market increased 3.8%. This is the first decline since 2012.

Redfin defines the luxury market as the priciest 5% of home sales.

“High-end buyers are usually not weighed down by rates, mortgages or competition from other buyers, but they do look for deals,” said Redfin chief economist Nela Richardson.

“The luxury market was the first to recover from the housing downturn, and now it’s a bellwether of slowing price growth for the rest of the market. Sales at the top end of the market continue to soar, but prices are downshifting,” she added.

Prices fell the most in Scottsdale, Arizona and Boca Raton, Florida, decreasing 15% year over year.

However, not all markets experienced a slowdown, with Washington, Denver, Delray Beach, Florida, and Bend, Oregon posting double-digit, year-over-year price gains in the third quarter. 

Most Popular Articles

Realtors expect these to be the 10 hottest housing markets for the next 3-5 years

Here are the 10 housing markets that the National Association of Realtors expects to the hottest in the nation in the next three to five years.

Dec 11, 2019 By

Latest Articles

Gateway First Bank makes two key hires

Gateway First Bank made back to back announcements this week regarding two key hires. The bank welcomed Joell Maddox as director of treasury services and Thomas Ramm joined as chief investment officer.

Dec 12, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please