Residential

Luxury homes can’t keep up with high demand

The supply shortage that has been plaguing the nation’s housing market for the past two years has now affected the most expensive homes.

The number of multimillion-dollar listings is suddenly dropping, and that is only making these pricey homes, well, pricier.

The top 5 percent of homes by price sold in the third quarter saw their values increase 4.9 percent compared with a year ago, hitting an average of $1.71 million, according to Redfin, a real estate brokerage.

The higher prices are the result of a sharp decline in listings in the luxury sector. The number of homes for sale priced at or above $1 million fell just over 18 percent compared with the same period last year.

Read Article at CNBC.com

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