Has the proliferation of pricey properties reached a saturation point? More:Michael Jackson’s 'Neverland' Estate Courts Chinese BuyersCNBC reports on new analysis from real estate brokerage Redfin which found that luxury-home prices have dropped in the U.S. for the first time since 2012. Redfin’s report, which tracked prices for for the top 5% of homes in 600 U.S. markets, found that the highest of high-end homes in America saw prices drop an average of 2.2% in the third quarter of this year compared to the same period last year. What’s behind the decline? "Luxury buyers don't buy because they need a place to live," said Mia Simon, a Redfin agent in San Francisco. "So they have flexibility to time a home purchase when the market is favorable."Soaring prices at the high end may also be giving wealthy buyers pause — especially at the very top of the market. According to Redfin, the average list price of $1 million-plus homes on the market surged 5 percent to $2.5 million in the third quarter as compared to the same quarter last year. The average price was the highest since at least 2012, the report said.
The report also found financial market volatility and “concerns about liquidity” to be factors. And while prices have dropped, sales continue to be strong for top-tier properties. Redfin discovered that total sales of homes over $1 million and $5 million rose 17% and 15% respectively in the third quarter of 2015 compared to the same period the previous year. But strong sales may not remain the status quo. The brokerage’s chief economist, Nela Richardson, notes that tighter inventory has led to “unrealistic prices” from sellers, leading to a standoffs with sellers which may translate to slower sales to start 2016. Who’d have thought $100 million-plus would be an unrealistic property price? More:Most Expensive Home in L.A. Takes $46 Million Price Cut[CNBC]View full listing (pictured top)