Markets & Economy

The luxury market is suffering an inventory shortage

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The nation's luxury market is seeing an inventory shortage and a quarterly price increase of 4.9 percent in as a consequence according to a new report from Redfin. The analysis tracks the top 5 percent of the most expensive homes sold in more than 1,000 cities across the U.S. each quarter. Q3 showed the average price increasing from last year not only in the luxury sector, but also non luxury-homes, which saw an average price of $336,000, an increase of 5.3 percent, by comparison. Courtesy of Redfin Why the price increase? It's likely due to a sharp decline in the number of luxury homes on the market. The number of homes priced at or above $1 million fell 18.1 percent for the second consecutive quarter, and homes priced at or above $5 million saw a 19 percent decrease. But Redfin's chief economist Nela Richardson said there's still a strong buyer demand for high-end homes. “Despite declining inventory, luxury sales soared in the third quarter. Sales of homes priced at...