{"id":688015,"date":"2022-09-22T08:33:22","date_gmt":"2022-09-22T12:33:22","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-luxury-home-purchases-plummet-28-the-biggest-drop-on-record\/"},"modified":"2022-09-22T08:33:22","modified_gmt":"2022-09-22T12:33:22","slug":"redfin-reports-luxury-home-purchases-plummet-28-the-biggest-drop-on-record","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-luxury-home-purchases-plummet-28-the-biggest-drop-on-record\/","title":{"rendered":"Redfin Reports Luxury-Home Purchases Plummet 28%, the Biggest Drop on Record"},"content":{"rendered":"<p>        <!--.bwalignc { text-align: center; list-style-position: inside }body {font:normal small Arial,Helvetica,sans-serif;color:#000;background-color:#fff;padding:24px;margin:0;} a img {border:0;} h3 {font-size:medium;color:#000;margin:0 0 1em 0; text-align:center;}-->  <\/p>\n<p class=\"bwalignc\"><b>Redfin Reports Luxury-Home Purchases Plummet 28%, the Biggest Drop on Record<\/b><\/p>\n<p class=\"bwalignc\"><i>High-end homebuyers are backing off as rising interest rates, inflation, a tepid stock market and economic uncertainty make it less feasible to purchase luxury goods<\/i><\/p>\n<p>SEATTLE&#8211;(<a href=\"http:\/\/www.businesswire.com\">BUSINESS WIRE<\/a>)&#8211;<br \/>\n(NASDAQ: RDFN) \u2014 Sales of luxury U.S. homes fell 28.1% year over year during the three months ending Aug. 31, 2022, according to a <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fluxury-home-sales-august-2022&amp;esheet=52922630&amp;newsitemid=20220922005235&amp;lan=en-US&amp;anchor=new+report&amp;index=1&amp;md5=2488684b0f7ceba9dbf14344cab17c23\">new report<\/a> from Redfin (<a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2F&amp;esheet=52922630&amp;newsitemid=20220922005235&amp;lan=en-US&amp;anchor=www.redfin.com&amp;index=2&amp;md5=b15b0c6293af7ea7ff8ea3354f91119d\">www.redfin.com<\/a>), the technology-powered real estate brokerage. That\u2019s the biggest decline since at least 2012, eclipsing the 23.2% plunge that occurred when the onset of the coronavirus pandemic brought the housing market to a near standstill roughly two years ago.\n<\/p>\n<p>\nSales of non luxury homes also fell the most on record, decreasing 19.5% during the three months ending Aug. 31. That slightly outpaced the 19% decline during the three months ending June 30, 2020.\n<\/p>\n<p>\nRising interest rates, inflation, a tepid stock market and economic uncertainty are causing luxury buyers to back off. The average 30-year fixed mortgage rate eclipsed 6% last week, hitting the highest level since 2008. While high-end buyers are more likely to pay in cash, many still take out mortgages\u2014sometimes as an investment strategy. The story in the luxury market is similar to the story in the overall housing market, but more extreme, said Redfin Chief Economist Daryl Fairweather.\n<\/p>\n<p>\n\u201cHigh-end-house hunters are getting sticker shock when they see the impact of rising mortgage rates on paper. For a luxury buyer, a higher interest rate can equate to a monthly housing bill that\u2019s thousands of dollars more expensive,\u201d Fairweather said. \u201cSomeone who was in the market for a $1.5 million home last year may now have a maximum budget of $800,000 thanks to higher mortgage rates. Luxury goods are often the first thing to get cut when uncertain times force people to reexamine their finances.\u201d\n<\/p>\n<p>\nExpensive California markets are leading the drop in high-end-home sales. In Oakland, CA, luxury-home sales plunged 63.9% year over year during the three months ending Aug. 31, the largest decline among the 50 most populous U.S. metropolitan areas. San Jose and San Diego also experienced decreases of more than 55%. These markets have something else in common: they\u2019ve seen larger declines in luxury listings than anywhere else in the country as sellers have backed off in response to ebbing demand. This has exacerbated the decline in home sales; when there are fewer homes hitting the market, there are fewer homes that can be sold.\n<\/p>\n<p><b>Luxury-Home Prices Are Growing at Half the Pace They Were a Year Ago<\/b><\/p>\n<p>\nHome-price growth in the luxury market is slowing as demand cools. The median sale price of luxury homes rose 10.5% year over year to $1.1 million during the three months ending Aug. 31, compared with an annual increase of 20.3% a year earlier and a record gain of 27.8% during the three months ending June 30, 2021.\n<\/p>\n<p>\nPrices of luxury homes are rising at a slower pace than prices of non luxury homes, which increased 15.5% year over year to $335,000 during the three months ending Aug. 31. That\u2019s down slightly from an annual increase of 17.2% a year earlier and a record gain of 19.7% during the three months ending March 31, 2022.\n<\/p>\n<p>\nPrice growth in the luxury market is also likely decelerating in part because the supply crunch is easing overall, which means house hunters have more options to choose from and less competition.\n<\/p>\n<p><b>The Shortage of Luxury Homes Is Letting Up<\/b><\/p>\n<p>\nThe number of luxury homes for sale fell 1.9% year over year to roughly 169,000 during the three months ending Aug. 31, compared with a record decline of 25% about a year earlier. Luxury-home supply is still down on a year-over-year basis, but has increased from the start of the year. The number of luxury homes on the market is up 39.2% from a record low of roughly 121,000 during the three months ending Feb. 28.\n<\/p>\n<p>\nThe supply of non luxury homes fell 3.5% year over year during the three months ending Aug. 31. That\u2019s the first time in roughly two years that luxury-home supply fell at a slower clip than non luxury supply.\n<\/p>\n<p>\nThe supply crunch in the luxury market is easing for two reasons: a decrease in demand and an increase in homes hitting the market. While listings are declining in expensive coastal markets including Oakland and San Diego, they\u2019re increasing overall. Nationwide, new listings of luxury homes rose 1.2% year over year during the three months ending Aug. 31, while new listings of non luxury homes fell 5.9%.\n<\/p>\n<p>\nTo read the full report, including charts, methodology and additional metro-level data, visit: <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fluxury-home-sales-august-2022%2F&amp;esheet=52922630&amp;newsitemid=20220922005235&amp;lan=en-US&amp;anchor=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fluxury-home-sales-august-2022%2F&amp;index=3&amp;md5=c95cfdb838d6e9d8cdcd072f548bc8e4\">https:\/\/www.redfin.com\/news\/luxury-home-sales-august-2022\/<\/a><\/p>\n<p><b>About Redfin<\/b><\/p>\n<p>\nRedfin (<a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.redfin.com%2F&amp;esheet=52922630&amp;newsitemid=20220922005235&amp;lan=en-US&amp;anchor=www.redfin.com&amp;index=4&amp;md5=d1fc8045298c4ae8cc842b2adbefa28f\">www.redfin.com<\/a>) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country&#8217;s #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we&#8217;ve saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.\n<\/p>\n<p>\nFor more information or to contact a local Redfin real estate agent, visit <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2F&amp;esheet=52922630&amp;newsitemid=20220922005235&amp;lan=en-US&amp;anchor=www.redfin.com&amp;index=5&amp;md5=051feeff6a007b7938adac8706460747\">www.redfin.com<\/a>. To learn about housing market trends and download data, visit the <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redfin.com%2Fnews%2Fdata-center%2F&amp;esheet=52922630&amp;newsitemid=20220922005235&amp;lan=en-US&amp;anchor=Redfin+Data+Center&amp;index=6&amp;md5=0309cdd9c002d9917831e1c14fbaf12e\">Redfin Data Center<\/a>. To be added to Redfin&#8217;s press release distribution list, email <a rel=\"nofollow\" href=\"mailto:press@redfin.com\">press@redfin.com<\/a>. To view Redfin&#8217;s press center, <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Finvestors.redfin.com%2Fnews-events%2Fpress-releases&amp;esheet=52922630&amp;newsitemid=20220922005235&amp;lan=en-US&amp;anchor=click+here&amp;index=7&amp;md5=611edcba85efec81844d76b61697e85b\">click here<\/a>.\n<\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20220922005235r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" style=\"width:0;height:0\" \/><span class=\"bwct31415\" \/><\/p>\n<p id=\"mmgallerylink\"><span id=\"mmgallerylink-phrase\">View source version on businesswire.com: <\/span><span id=\"mmgallerylink-link\"><a href=\"https:\/\/www.businesswire.com\/news\/home\/20220922005235\/en\/\" rel=\"nofollow\">https:\/\/www.businesswire.com\/news\/home\/20220922005235\/en\/<\/a><\/span><\/p>\n<p><b>Redfin Journalist Services:<br \/>\n<\/b><br \/>Erin Osgood, 206-588-6863<br \/>\n<br \/><a rel=\"nofollow\" href=\"mailto:press@redfin.com\">press@redfin.com<\/a><\/p>\n<p><b>KEYWORDS:<\/b> Washington United States North America<\/p>\n<p><b>INDUSTRY KEYWORDS:<\/b> Construction &amp; Property Residential Building &amp; Real Estate<\/p>\n<p><b>MEDIA:<\/b><\/p>\n<table cellpadding=\"3\" cellspacing=\"3\">\n<tr>\n<td><font face=\"Arial\" size=\"2\"><b>Logo<\/b><\/font><\/td>\n<\/tr>\n<tr>\n<td><img decoding=\"async\" src=\"https:\/\/mms.businesswire.com\/media\/20220922005235\/en\/1407505\/3\/Redfin_Standard_Web_Logo.jpg\" alt=\"Logo\" \/><\/td>\n<\/tr>\n<tr>\n<td><font face=\"Arial\" size=\"2\"><\/font><\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Redfin Reports Luxury-Home Purchases Plummet 28%, the Biggest Drop on Record High-end homebuyers are backing off as rising interest rates, inflation, a tepid stock market and economic uncertainty make it less feasible to purchase luxury goods SEATTLE&#8211;(BUSINESS WIRE)&#8211; (NASDAQ: RDFN) \u2014 Sales of luxury U.S. homes fell 28.1% year over year during the three months ending Aug. 31, 2022, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That\u2019s the biggest decline since at least 2012, eclipsing the 23.2% plunge that occurred when the onset of the coronavirus pandemic brought the housing market to a near standstill roughly two years ago. Sales of non luxury homes also fell the most on record, decreasing 19.5% during the &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-luxury-home-purchases-plummet-28-the-biggest-drop-on-record\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Redfin Reports Luxury-Home Purchases Plummet 28%, the Biggest Drop on Record&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-688015","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Redfin Reports Luxury-Home Purchases Plummet 28%, the Biggest Drop on Record - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-luxury-home-purchases-plummet-28-the-biggest-drop-on-record\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Redfin Reports Luxury-Home Purchases Plummet 28%, the Biggest Drop on Record - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Redfin Reports Luxury-Home Purchases Plummet 28%, the Biggest Drop on Record High-end homebuyers are backing off as rising interest rates, inflation, a tepid stock market and economic uncertainty make it less feasible to purchase luxury goods SEATTLE&#8211;(BUSINESS WIRE)&#8211; (NASDAQ: RDFN) \u2014 Sales of luxury U.S. homes fell 28.1% year over year during the three months ending Aug. 31, 2022, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That\u2019s the biggest decline since at least 2012, eclipsing the 23.2% plunge that occurred when the onset of the coronavirus pandemic brought the housing market to a near standstill roughly two years ago. 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-luxury-home-purchases-plummet-28-the-biggest-drop-on-record\/","og_locale":"en_US","og_type":"article","og_title":"Redfin Reports Luxury-Home Purchases Plummet 28%, the Biggest Drop on Record - Market Newsdesk","og_description":"Redfin Reports Luxury-Home Purchases Plummet 28%, the Biggest Drop on Record High-end homebuyers are backing off as rising interest rates, inflation, a tepid stock market and economic uncertainty make it less feasible to purchase luxury goods SEATTLE&#8211;(BUSINESS WIRE)&#8211; (NASDAQ: RDFN) \u2014 Sales of luxury U.S. homes fell 28.1% year over year during the three months ending Aug. 31, 2022, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That\u2019s the biggest decline since at least 2012, eclipsing the 23.2% plunge that occurred when the onset of the coronavirus pandemic brought the housing market to a near standstill roughly two years ago. 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