Luxury Home Market Suffers, as Sales Fall

Soaring mortgage rates and elevated home prices are dampening home sales, even among the luxury offerings.

Existing-home sales fell 0.4% in August from July, the seventh straight month of declines, and 19.9% ​​from the year-earlier month, according to the National Association of Realtors.

High-priced homes haven’t escaped the downturn. Sales of luxury homes, defined as those in the top 5% of market value, plunged 28.1% year-over-year in the three months ended Aug. 31, according to real estate brokerage Redfin. That’s the biggest descent since at least 2012, when Redfin’s data begins.

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