The end of the spring-summer buying season is taking its toll on luxury properties. Median days on market for homes selling over $500,000 has fallen 40 percent since the peak of the season in May.
From about 118 days in mid-May, days on market for all homes priced over $500,000 has risen to 198 days as listings linger and demand fades, according to the latest weekly Institute for Luxury Home Marketing report, which is prepared by Altos Research.
New listings in the ILHM database are now outpacing sales by about 8 percent. Total luxury inventory is 30,442 homes, significantly higher than the luxury homes listed at the outset of the season in March.
Sellers caught with unsold properties are contemplating a cold winter; nearly half have lowered prices. Some 40 percent of all luxury properties on the market have experienced at least one price reduction. However, luxury home prices across the ILHM database have stayed relatively stable in recent weeks. This past week the median asking price for a property in the luxury category was $1,053,858.
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