Will Luxury Home Prices Continue to Fall?
Home prices in the luxury market (at least $1 million) fell in the 3rd quarter for the first time since 2012. The reason for the decline may be that wealthy buyers fear that prices have climbed too high, too quickly. Also foreign investors could be buying less due to volatility in the global markets, and a bigger supply of luxury homes might also be pushing prices down. According to Redfin, the biggest luxury-market losers were Scottsdale, Arizona and Boca Raton, Florida, where prices sunk 15% year over year. Redfin tracks the most expensive 5% of homes sold in more than 600 U.S. cities nationwide and compares price changes to the bottom 95% to make this analysis.