Industry News

The bust in high-end homes

Luxury housing prices soften nationwide

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

After a year on the market, the seller of a six-bedroom, 20,000-square-foot home in Weston, Mass., slashed the asking price by $8.1 million. The new home, located near Boston, first entered the market at $18 million, then fell to $13.9 million and now stands at $9.9 million. "It won't be reduced anymore," said Sophia Camann, the listing agent with Hammond Residential Real Estate in Greater Boston. Camann said the significant price reduction on the luxury home is a common trend in the market these days. Sellers had to lower prices over the last year because buyers weren't willing to pay as much for these homes. The trend is evident in luxury markets nationwide. Homes priced above $3 million in some parts of San Francisco also saw significant markdowns last year. The price reductions in the high-end market could indicate future softening in the median-priced market or in some instances could be a sign the homes previously were overvalued. Economists often see softness in the high-...