Luxury market slowing, preparing for a new normal in 2020
As we hurdle into the holidays and real estate’s slowest season, I want to provide an update as we close out the year and prepare for 2020.
In 2019, the years long seller’s market — in which intense buyer demand and lower inventory pushed home prices up and days-on-market down — has slowly diminished.
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For example, 40 percent of Denver homes sold in October had a price reduction!
The higher end of the market has seen even cooler activity.
Homes priced over $1 million saw an average price reduction of $149,742 in October. By contrast, homes under $500,000, had average price reductions between $10,750 and $21,362.
Of course, the size of the price tag influences those raw numbers, but the higher end continues to have less heat than at lower price points.
This is why sellers of higher-end homes are beginning to price their homes competitively out of the gate.