Luxury Home Sellers Stick to Prices as High-End Listings Go Down in the U.S.
After the roaring sales of luxury homes in November 2012, not many high-end homes are being listed. The listed homes now remain in the market for an average of 248 days. However, the prolonged, unclaimed listing has not affected the home prices as sellers are hanging on to the original values.
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Usually, luxury home sales accelerate in the summer and cool off gradually in the winter. Traditionally, sellers slash down prices in the winter due to lowered sales. However, with lesser homes being listed this time, sellers have not reduced their prices.
According to the data retrieved from archives of the Institute for Luxury Home Marketing, it was observed that the number of home listings went down to 18,400 homes in January 2013 from the 27,600 homes listed in June 2012. This has created an upward strain on the prices making it impossible for the sellers to slash down prices, reports RIS Media.
In September, the average price of a luxury home was around $1.11 million, which has gone up to $ 1.23 million in January. The total percentage of home prices that have been lowered in the last 90 days fell by ten points. The number of sellers offering discounts on high-priced homes due to the low rate of listings has gone down, reports Real estate Economy Watch.
However, if offered, only a 10 to 12 percent discount can be expected in a strong sellers' market. The demand for the luxury properties will also play a major role in the availability of discounts, reports UPI.com.
With the rise in global demand for luxury properties in the U.S., supply of these homes must complement the demand, failing which, the prices are likely to remain unaltered.