10 reasons luxury homebuyers took a real estate break in 2016

What 'luxflation' and the 'great correction' have done to the real estate industy
  • While the Great Recession was detrimental for homebuyers, the Great Correction is getting real estate back to where it was.
  • Despite their impressive wealth, luxury consumers are very cautious spenders who don't mind putting the breaks on a expensive purchase.

Last year marked the first time in history that luxury homes prices scaled back rather dramatically, independent of downward economic pressure. Luxury goods as a whole are experiencing a similar reversal of the runaway luxflation — or continual inflation of the luxury value of goods — that, until recently, was unjustifiably raising prices to unreasonable levels.