A new report out by the National Association of Realtors showed that pending home sales have risen to a 7-month high for February, and yet total home sales plunged to a 3-month low and is down more than 7%.
CNBC Contributor Ron Insana thinks high-end housing is headed to crash, particularly in New York where he's seen a dangerous oversupply, citing slowing demand, especially from foreign buyers.
"Power Lunch" interviewed three different real estate agents to understand the state of high end housing around the nation.
"The lull in contract signings is likely from the large East Coast blizzard, along with the slump in the stock market," Sam DeBianchi, founder of DeBianchi Real Estate told CNBC.
"Prices have gone up in Miami from 9% year over year, and wages have only increased 3-4%. People aren't able to spend as much, because they're not making as much," DeBianchi said. "Buyers can purchase though, because rates are still low."
DeBianchi cautions that's it's not a market to be flipping. "If you are an investor, however, it's still a great time to buy and rent it out, because you can still find those cash on cash returns."
"Anything under $3 million, we're seeing go right off the market," Austin Hoffman, real estate agent with Douglas Elliman told CNBC. "We're seeing a lot of price reductions in those higher end properties as listings are not moving as fast."
"From $1 to $15 million, our numbers are up and we're actually looking good," Aaron Kirman, President of the International Estates Division of John Aaroe Group told CNBC. "Where I'm beginning to see a slow-down is the uber high end, like $20 million up, there's a slowdown."