In keeping with the newest data published this week by the corporate Redfin, even high-end luxury homes aren’t proof against the continued crisis in the US housing market.
Sales of luxury homes – defined as properties estimated to be in the highest 5% based on market value – fell as much as 38.1% in the three months ending November 30 in comparison with the identical period a 12 months ago, in response to an organization report.
The decline in luxury real estate was the sharpest on record since Redfin began tracking the market in 2012. By comparison, sales of non-luxury homes – properties that fell in the 35% percentile to the 65% market by estimated value – fell 31.4% over the identical period.
Nassau County, Long Island, saw the most important drop in luxury home sales of any market in the country, with deal volume down 65.6% from last 12 months. Several markets in California, including San Jose and Anaheim, also topped the list.
“The luxury goods market and the general housing market have lost momentum this 12 months attributable to lots of the same aspects: inflation, relatively high rates of interest, stock market collapse and recession fears,” Redfin said in a blog post on the trend.
![Luxurious houses](https://nypost.com/wp-content/uploads/sites/2/2022/12/luxury-homes-sale-221230-08.jpg?w=1024)
Redfin listed several aspects answerable for the freeze on luxury real estate, including a bleak outlook for investment properties as home prices fall, tighter budgets amid the looming recession and potential losses in the stock portfolios of affluent buyers.
Rising mortgage rates have reduced affordability for all potential buyers who face the prospect of steeper monthly payments for brand new homes.
![Luxurious houses](https://nypost.com/wp-content/uploads/sites/2/2022/12/luxury-homes-sale-221230-06.jpg?w=1024)
The average 30-year fixed rate mortgage traded at 6.42% on Thursday, in response to Freddie Mac. Rates of interest roughly doubled initially of the 12 months because the Federal Reserve raised rates of interest.
Nevertheless, mortgage rates have fallen barely since hitting 7% in the autumn – a trend that would see the market thaw over time.
![Luxurious houses](https://nypost.com/wp-content/uploads/sites/2/2022/12/chart-homes-sold.png?w=1024)
“With mortgage rates falling, many home hunters see this as their moment to come back back and compete,” said Seattle Redfin agent Shoshana Godwin.
As reported by The Post, house prices have already began to fall in many markets – and housing experts expect the trend to accentuate in the approaching 12 months.
Experts from DataTrek and Pantheon Macroeconomics predicted that house prices could fall by 20% in the course of the ongoing correction.