Ultra-Luxury Sellers Are Slashing List Prices
More luxury home sellers are reportedly cutting their asking prices, hoping for a quicker sale, The Wall Street Journal reports.
In January, 4.1 percent of homes for sale at $5 million or above had their asking prices reduced – a 50 percent increase from a year ago, according to data from realtor.com®. The median price of the reduction was $501,000 or 7.2 percent of the list price.
For comparison, 12.2 percent of all homes for sale saw a reduction in their list prices, which is up just 4 percent over the year.
As sales have slowed among real estate’s priciest homes, home sellers are getting more realistic, The Wall Street Journal reports. In 2014, record sale prices grabbed national headlines. That prompted more luxury sellers to want to test the market with their hefty asking prices too. But in the second half of 2015, sales have fallen.
More luxury home owners are receding from “aspirational pricing,” which will help more deals move through, says Jonathan Miller of the appraisal firm Miller Samuel in New York. “The high-end of the market peaked well before the balance of the market.”
Source: “More Luxury-Home Sellers Drop Their Asking Prices,” The Wall Street Journal (April 12, 2016)