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.