Luxury Home Prices Fall as Starter Homes See IncreasesBy RISMedia Staff
Home prices have been the subject of much discussion throughout the recent housing market struggles. The current housing market correction has been slowing price growth, and luxury homes are now seeing year-over-year declines. However, a new Realtor.com report found that starter homes prices are still seeing growth in many markets.
Realtor.com’s latest report compares year-over-year price changes for starter and luxury homes to see how each segment of the real estate market has fared. Largest drops in luxury home prices:
“On one end are starter homes, traditionally smaller and more affordable, geared toward first-time homebuyers; on the other, luxury homes, the spacious mansions with every amenity imaginable marketed to the wealthy,” said Evan Wyloge, data journalist at Realtor.com and author of the report. “Each market has faced its own highs, lows, and distinct challenges.” “Luxury purchases are more discretionary. For starter homes, different forces are at work,” said Danielle Hale, chief economist at Realtor.com. “If you think of luxury home purchases as discretionary, starter home purchases are almost the opposite. It’s more about timing and strategy.” “You see a correlation between the stock market and real estate, simply because stocks make up a greater portion of the financial portfolios of high net worth buyers,” Hale continued. “When people in the market for a house are most looking for affordability, that’s challenging now.” For the full report, click here. |
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