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July 2017   Volume 43, Number 7      
 

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Luxury Real Estate Starting to Cool Off

After several years of rapid growth, luxury real estate demand across the globe is slowing. Sales of homes priced at $1 million and higher increased just 1 percent in the last year, after enjoying increases of 8 percent in 2015 and 16 percent in 2014, according to a new report from Christie’s International Real Estate.

The Commerce Department says housing starts fell by 2.6 percent in April to a seasonally adjusted annual rate of 1.17 million units. This decline followed a 6.6 percent decline in March.

Sales for 2016 and the first part of 2017 are starting to show “a shift toward more of a buyer’s market,” Christie’s International Real Estate CEO Dan Conn said in a statement.

The report also confirmed that consumer sentiment is the most important factor affecting the movement of luxury home prices. The election of Donald Trump, restrictions on Chinese capital flows, and Brexit are some of the political developments causing uncertainty amongst high-end buyers.

Prices for luxury homes have increased 2 percent worldwide, but fell 3 percent in the United States. It’s also taking sellers longer to move these properties with luxury homes sitting on the market an average of 7 months longer than last year, an increase of 13 percent from 2015.

However, there are still U.S. markets where luxury sales are strong. The report ranked New York City, Los Angeles, San Francisco, and Miami as four of the top 10 cities for luxury real estate.

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In this issue:

The Best, Worst Metros for Real Estate Investors

Five States with the Highest, Lowest Cost of Living

Americans’ Confidence in Economy Reaches Post-Election Low

EB-5 Program Extended Through September 2017

Flexible Workspace Real Estate Trend Set to Take Off

Home Builders Target Millennials with Lower-Priced Homes

Housing Starts Decline 2.6 Percent in April

Luxury Real Estate Starting to Cool Off

Market Competition Intensifies for Millennial House-Hunters

How Realtors Are Using Mobile Technology



 


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