The $1 billion price cut: Luxury real estate gets slashed

Dated: 09/02/2018

Views: 20

The most expensive real-estate in America just became a little less expensive — with $1 billion in price cuts among America's top listings over the past few months, according to a CNBC analysis.

The high-end real-estate market has seen steep price cuts in recent months as foreign buyers dry up, new tax laws bite the wealthiest states and sellers realize the market peak of 2014-2015 isn't coming back anytime soon, luxury brokers say.

According to RedFin, the real-estate brokerage and research firm, fully 12 percent of homes listed for $10 million or more saw a price drop in 2018 — double the levels of 2016 and 2015. Just over 500 listings in the U.S. had a combined price cut of $1 billion in the second quarter, according to RedFin.

"Prices were growing too fast for what buyers were willing to pay," said Taylor Marr, a senior economist at RedFin.

Some of the price cuts have reached tens of millions of dollars, according to the listing. The Ziff family estate in Manalapan Florida cut its price in May by $27 million, from $165 million to $138 million. That follows a previous price cut, from $195 million last year — so it's price has dropped by $57 million over the past year.

A 10-bedroom mansion on Miami Beach's posh Star Island cut its price by $17 million in May, from $65 million to $48 million. A giant apartment at New York's Sherry Netherland had its price cut by $18 million, falling from $86 million to $68 million.

Read more...

Blog author image

Jon Motsenbocker BRE #01950257

My name is Jon Motsenbocker and I was born and raised in Fresno, California. I've only had two hourly wage jobs in my lifetime. I've spent more than 30 years in commission sales, so I understand what ....

Latest Blog Posts

Former home of music legend Cher hits the market in Beverly Hills

TAKE a look around a stunning Beverly Hills pad formerly owned by American pop singer Cher. It’s one of this week’s list of international dream homes to have hit the market …Real

Read More

The $1 billion price cut: Luxury real estate gets slashed

The most expensive real-estate in America just became a little less expensive — with $1 billion in price cuts among America's top listings over the past few months, according to a CNBC.

Read More

FIRST-TIME BUYERS HAVE BOUGHT 985K HOMES THIS YEAR

Home sales may be slowing overall, but not among first-time home buyers, according to a new report. Genworth Mortgage Insurance culled all publicly available government and proprietary mortgage

Read More

10 YEARS AFTER THE FINANCIAL CRISIS, IS THE HOUSING MARKET STILL AT RISK?

The economy is booming. The stock market regularly hits new all-time highs. Unemployment is at record lows. Aside from a small recent downturn, the housing market is as hot as ever.In many ways, the

Read More