The high end of the real estate market has followed a different path since the financial crisis and housing crash. But while the luxury home market was able to avoid some of the ups-and-downs the rest of the market has endured, things are beginning to change.
In fact, one recent analysis shows the number of homes for sale priced at or above 1 million dollars fell significantly during the first quarter of this year, as compared to the year before. And, if inventory continues to drop, the luxury home market could see some of the spiking prices and competition for available homes that buyers have found in more affordable price ranges.
However, though this may be true, the effects have, so far, been far more muted than in the overall market. For example, the average luxury home was on the market for 82 days during the last quarter. That’s faster than the same time the previous year but much longer than the overall average.
For comparison, the National Association of Realtors’ most recent data shows the typical existing home was on the market for just 30 days, with 50 percent of homes sold in less than a month.