Prices for luxury homes posted their first drop since 2012, suggesting the top of the market may be getting too rich even for the rich.
According to the Redfin real estate company, prices for luxury homes — defined as the top 5 percent of each of the 600-plus U.S. markets it measures — fell an average 2.2 percent in the third quarter compared to the same period last year.
That compares to an average price increase of 3.8 percent in the rest of the housing market. The report said wealthy buyers may be pulling back from real estate due to volatility in financial markets and "concerns about liquidity."
"Luxury buyers don't buy because they need a place to live," said Mia Simon, a Redfin agent in San Francisco. "So they have flexibility to time a home purchase when the market is favorable."