Redfin, the large national real estate
firm based in Seattle, is reporting that, while sales of homes costing over $1
million is still outpacing the rest of the market, the source of these sales is
changing. The company says that the
luxury housing market, which was the first segment to recover after the housing
crisis, continues strong, driven by a record high stock market, low interest
rates and by foreign investors.
Sales of home costing more than $1 million
increased by 9 percent in the third quarter of 2014 even as all home sales were
down 1.2 percent when compared to the third quarter of 2013. However Redfin says that overseas investment
in these homes is beginning to flag and those markets which have benefitted the
most from foreign investors are seeing “a steady and dramatic decline in sales
of million-dollar-plus homes.” Those
cities where there is less reliance on investors, both foreign and domestic,
are still seeing a steady increase in high-end sales.