AgentIndustry News

Where are the luxury buyers?

High-end markets on both coasts feel the pinch

For a period of time after the onset of the credit crisis in 2007, it appeared the high end of the residential home market had sidestepped the disaster that had befallen the rest of the housing industry. The general thinking was: moneyed folk, despite the collapse of all types of investments, had the assets to hang in there through the tough times and were not forced to sell. While that may be true, recent numbers by a host of organizations are showing even the priciest home markets are getting smacked about. Indeed, if you have a spare $1 million to $2 million in your wallet, this could be a good time to buy. The most recent data from the National Association of Realtors demonstrates the overall problem. According to NAR, the national share of home sales above $750,000 has fallen from 4.4 percent in 2007 to approximately 2.3 percent in 2009, and the months' supply of inventory has risen from 18.7 months to 41.1 months during the same period. To see what's going on, I checke...