Luxury Homes Sales Decline Most Since 2010 As Supply Soars

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Supply of luxury $2.0 million homes is up four consecutive quarters but sales are down 16%, the most since 2010.

In the luxury home market there is a mad dash for the exit.

However, buyers are holding their noses as Luxury Home Sales See Biggest Slump in Nearly a Decade.

Sales of homes listed at $2 million and above fell 16% in the first quarter, the sharpest annual decline since 2010, according to Redfin, a real estate brokerage.

This as the supply of those homes rose 14%, marking four straight quarters of annual increases in inventory.

The average price of a "luxury" home, which Redfin defines as the top 5% in each of the 1,000 cities it tracks, fell 1.6% to $1.55 million. Nonluxury homes saw their average price rise 2.7% annually to $300,000.

"Not only do the new rules make it less desirable to purchase a multi-million dollar home in high-tax states, it has also motivated some people—especially those with big incomes and big housing budgets&mda
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