The U.S. luxury housing market has cooled in the first quarter of 2016, with four major cities seeing double-digit slumps in the average sales price of luxury homes, according to Redfin, a national real estate brokerage.
In the first three months of this year, the average price of luxury homes across the U.S. dropped to $1.59 million, down 1.1% from the same period last year. Redfin defines the most expensive 5% of homes as “luxury homes”.
The five biggest losers are Sandy Springs, GA; Miami Beach, FL; Austin, TX; Boston, MA and Alexandria, VA, proving that the slowdown was widely spread across the country. The first four cities were all hit by double-digit loss.
Global economic and stock market volatility has driven the price decline, said Nela Richardson, Redfin’s chief economist.
“Luxury buyers recoiled from high-end spending in the face of volatile asset prices,” she said, “Luxury demand, especially for vacation and investment properties, has been more fragile this year, causing prices to slump.”