Even wealthy buyers are starting to walk away from the US housing market
Two years ago, Austin realtor Amy Deane of Moreland Properties was working with so many wealthy foreign buyers that she showed off a $15 million home five times in 30 days. Now she might get a call every two weeks for showings in that price range. “That big pool of buyers has slowed down,” she said. “The first movers signed up and moved.”
After an epic two-year run, not just in Austin but in major cities across the country, the luxury real estate market is finally cooling down.
Real estate agents in places like New York, Los Angeles and the Hamptons say the frenetic transactions and record prices that have characterized recent years have eased, thanks to a growing disconnect between what sellers want and what buyers want. will pay. . Meanwhile, buyers grapple with inflation, this year’s interest rate hike and stock market volatility. Gas prices and the war in Ukraine are adding to the feeling of economic uncertainty, throwing cold water on sales of luxury goods.
The number of luxury homes – defined as the top 5% in the market – sold in a three-month period from February 1 to April 30, 2022, fell 18% compared to the number of sales during the same period in 2021, according to a new report from real estate brokerage firm Redfin. This is the biggest drop since the start of the pandemic, when the number of luxury sales fell 23.6% in the three-month period between April 1 and June 30, 2020, compared to at the same time in 2019. Prices are holding up, but are unlikely to continue making new highs as buyers pull back, according to Sheharyar Bokhari, senior economist at Redfin. Moreover, he said, the volume of transactions finds a new balance after the number of sales jumped 79.6% in a three-month period between March 1 and May 31, 2021, compared to the same period a year earlier.
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