Luxury Home Market Weak In CA
A report out of Long Beach, CA, says luxury homes are taking longer to sell. "Properties across the board are sitting on the market longer thanks to a rise in the number of homes for sale. The state's housing inventory is double the level of last year, according to the California Association of Realtors."
"Sales of homes for $1 million and up rose from 19,100 in 2003 to 33,100 in 2004."
"'I think it's a psychological threshold as well as a threshold for financial obligation,' said Robert Kleinhenz, an economist with the CAR. In talking with realtors, more people are backing out of the luxury market, or looking at more affordable options inland, he said."
"Even at the high end of the market people are shopping for the best deal, said Richard Daskam, with Keller Williams Realty in Long Beach."