Redfin reports that Boston saw the sixth-steepest decline in luxury prices. A 4.7 percent in the third quarter, to an average of $3.6 million. The decline on the high-end market happened even as prices in the 95% of the market rose 7%. A buildup of inventory at the high end of the market is not happening just in Boston, but in other markets like NYC and San Francisco.
“A great deal of the slowing price growth among luxury homes can be explained by the stock market, a strong indicator of luxury homebuyers’ wealth, or at least their perceived wealth,”
Redfin chief economist Daryl Fairweather wrote in a report from the real estate firm.
“The swings many people have been watching in their stock portfolios have only grown more frequent … so we expect this trend of slowing luxury home price growth to continue at least into the end of the year,”