DataMarkets & Economy

Ultra-luxury housing market slows, but still moving

The slowdown in the ultra-luxury real estate market is a product of various factors
  • Ultra-luxury properties throughout the world saw price cuts in 2015, according to Christie's International Luxury Defined report.
  • Growth in $1 million-plus home sales has slowed in Los Angeles, but remains positive. New York City and Miami saw negative growth.
  • Oil prices, global economics and rising home prices in the U.S. are causing international buyers to second guess an overseas purchase.

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On the heels of Brexit, the ultra-luxury housing market is in question. Mega-mansions and lush estates in Los Angeles are prone to price cuts, according to a recent story in the Los Angeles Times, but the slowdown was somewhat expected this year even before Britian's vote. The oil turn, global economics and rising home prices in the U.S. have all added fuel to the fire. And although L.A. isn't seeing nearly as impactful a shift as Manhattan and other condo-driven, ultra-luxury markets, the market is still slowing in the long run, according to real estate analysts. Christie's International Real Estate's annual study Luxury Defined examined data from 100 luxury real estate markets worldwide, finding a general slow in growth among most markets. So while the number of L.A.'s $1 million-plus sales are still growing, it's at a more modest pace than earlier, according to the study. New York City slid backward in growth by about 5 percent, and Miami fell by a sliver. Are...