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More high-end home sellers across the country are being forced to offer<\/a> discounts as the luxury real estate<\/a> market shows signs of softening, The Wall Street Journal reports.<\/p>\n Read more<\/strong>: Luxury Owners Rethink How They Use Space<\/span><\/p>\n<\/blockquote>\n “Buyers are very price sensitive,” says Donna Olshan, a real estate professional based in Manhattan. “If it’s not priced right it’s going to sit until the cows come home.”<\/p>\n Real estate<\/a> pros and sellers in the luxury market are having to adjust their expectations. In the third quarter of 2016, the median asking price for homes in the top 5 percent of listings<\/a> reached $1.2 million, an 18 percent increase from a year ago, according to realtor<\/a>.com\u00ae market data. The actual sales prices in that luxury segment, however, only rose by 3 percent during that period.<\/p>\n Luxury listings are lingering on the market longer than the overall market too. Luxury listings are taking a median of 131 days to sell, about 4 percent slower than a year ago, realtor.com\u00ae\u2019s data shows.<\/p>\n “The smart sellers today are pricing for now, not 2014,” says Jeff Adler, of New York’s Douglas Elliman. “An $88 million apartment went into contract three years ago and just sold. Would they get $88 million today? Probably not.”<\/p>\n The strength of the U.S. dollar has caused some overseas buyers to pause.\u00a0 Also, oversupply may be another problem facing the luxury market. For example, a surge in luxury condos and speculative homes over the past five years in markets like New York and Miami has sparked a slowdown. A luxury apartment in Manhattan was listed<\/a> in April for $120 million and is now being offered at $96 million, a $24 million discount. A luxury condo in midtown is seeing developer discounts now being offered at 10 percent to 15 percent on lower-level units priced between $4 million and $12 million.<\/p>\n “We’ve priced to account for today’s market,” says developer Gary Barnett. And, “the market wants to see some discounting.”<\/p>\n Source: \u201cLuxury Home Sellers Slash Millions off Asking Prices,\u201d The Wall Street Journal (Feb. 23, 2017) [Log-in required.]<\/em><\/p>\n<\/div>\n [ad_2]\n
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