A shortage of properties for sale is one of the reasons why the market for luxury homes is subsiding. The drop in sales in the three months to April 30 was the largest since the Pandemic. Non-luxury property was down by 5.4%. Elena said that the pool of people qualified to purchase luxury properties is decreasing because of the stock market's decline. A Florida-based agent said she had a $2 million home under contract before the buyer backed out.
The higher the interest rate, the higher the mortgage payment would be. They couldn't afford the house anymore.
At the end of last year, the 30-year mortgage rate was 3.11%. Jumbo mortgage rates are at the same level.
The average price for a home in the top 1% of the US was $5.5 million in January.
The shortage of homes on offer led to fewer sales of top-end properties. During the three months to April 30, the number of luxury homes up for sale plummeted by 12.4% compared to the same time last year.
It has recorded its first increase since the summer of last year.
Competition is easing up and the market is becoming more balanced. It doesn't help the scores of Americans who have been priced out completely.
One of the top 50 metropolitan areas saw sales of luxury homes fall. In Nassau County, NY, the biggest decline was 45%, followed by Oakland, CA and Dallas. There was an increase in New York.
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