Sales of million-dollar homes are softening.
It's not a correction, experts caution, just something of a breather brought on by volatility in the U.S. stock market and an oversupply of luxury homes.
Sales of homes priced above $1 million fell 4 percent in July from a year ago, according to the National Association of Realtors. Activity is far more robust at the entry level and middle of the market, thanks to a drop in mortgage interest rates and pent-up demand. Luxury, however, doesn't rely on mortgages so much, but is far more sensitive to financial markets.
"That market was the first to recover after the financial crisis, but it's run its course," said Jonathan Miller of Miller Samuel, a real estate appraisal and consulting firm that tracks 18 real estate markets across the country, including New York, the Hamptons and Miami. "Part of it is aggressive pricing and part of it is excess supply."