We aren't seeing it as much in San Diego (yet?), but throughout the country about 10.7 percent of homes on the market priced between $2 million and $5 million underwent price reductions in March, according to a Realtor.com® analysis. Locally we are seeing longer market times and buyers asking for concessions though.
Where are the areas that luxury homes are showing even greater price reductions than the average? It is primarily the South according to the analysis. It is in areas where there is more inventory so buyers can afford to be more selective. Six of the top 11 markets with the greatest price reductions in this luxury price point are in Florida. They too are having a problem getting home owner's insurance as we are in California. They also don't have as many buyers that can afford a $2 million dollar home. Closer to us, Phoenix is also on this list with an average price reduction of 22.3 percent on homes in this price point. Could it happen here? Perhaps but not until we get more inventory on the market. We still have interested buyers and not much to buy. If you are interested in reading more about the national numbers check out this Realtor.com article.
