The sales volume of the priciest homes in the U.S. is falling but their price tags are rising. Real estate brokerage Redfin released data this week that showed a four percent decrease in sales of homes priced at $2 million or more during the fourth quarter of 2018. This is the first time in more than two years that home sales at that price point have declined on a year-over-year basis. Uncertainty on Wall Street may have been a factor for the decline according to Redfin.
“In the fourt quarter of 2018 there was a lot of economic uncertainty – the stock market was all over the place,” said Daryl Fairweather, Redfin’s chief economist. “This may have encouraged luxury sellers to hold on to their real estate assets and also caused luxury buyers to be reluctant to make major home purchases.”
Nonetheless, luxury home prices continue to rise. The average sale price for the top 5 percent most-expensive homes in the U.S. rose 4.7 percent in Q4 to an average of $1.772,000.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.