Luxury Market Slowdown
E.B. Solomont writes in the Wall Street Journal that economic uncertainty fueled by rising interest rates, volatile stocks and frothy prices is leading to a luxury slowdown…(Wall Street Journal)
“Real-estate agents in major cities say things have calmed down from the frantic pace over the last two years “thanks to a growing disconnect between what sellers want and what buyers will pay” writes Solomont.
- BYE-BYE SELLERS MARKET: “…buyers are grappling with inflation, this year’s interest-rate hike and the volatile stock market. Gas prices and the war in Ukraine are adding to feelings of economic uncertainty, effectively throwing cold water on luxury sales.”
- PERCEPOTION MATTERS: “Nikki Field, of Sotheby’s International Realty, said although sellers aren’t cutting prices, some buyers are ‘throwing lowball offers again…You don’t want days on market during a slow period,’ she said, and neither sellers nor their agents don’t want a listing to get stale.”
Housing is not unlike the stock market. Sensing economic conditions the “smart money” started liquidating positions at the beginning of the year before the market began to fall. If higher net worth individuals are pulling back because they are worried about buying at the top you have to assume this happening at all levels. The slowing in housing is officially here.
