Luxury Home Sales Fell 5% in April Quarter on High Uncertainty: Redfin
Luxury home sales fell in the U.S. for the three months ended April 30, Redfin reported Friday. Sales of non-luxury homes dropped 5.4%, said the real estate brokerage firm, which defines luxury homes as the most expensive 5% of houses…
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in a given market. Redfin cited higher interest rates, a “tepid” stock market, inflation and economic uncertainty as dampers to demand. The year-over-year cool down is also a reflection of the market for high-end homes “coming back to earth following a nearly 80% surge in sales a year ago,” it said. Luxury home sales growth began to slow last summer amid an “extreme shortage” of high-end properties for sale driven by a spike in interest from wealthy remote workers looking to escape urban areas during the COVID-19 pandemic and take advantage of low mortgage rates. The inventory crunch has begun to ease, but the shortage of luxury homes on the market is still likely contributing to the drop in luxury residential sales, it said. The average 30-year fixed mortgage rate was 5.23% in the week ending June 9, down from a peak of 5.3% earlier this year but still significantly higher than 3.11% at the end of last year, Redfin said.