For U.S. homeowners, the bad news in 2018 has been mounting, with rates on the rise and swaths of the real estate sector turning into a buyer’s market. In some of the country’s hottest segments, price gains have cooled definitively, with prices slashed and turnover stagnating.
The phenomenon has even been chronicled on Instagram by an account called Cheap Old Homes, underscoring how many gems have suddenly become (relatively) more affordable, depending on the location. In softer markets like formerly white-hot Seattle, 22 percent of listings are at a reduced price and—for the first time in four years – a buyer was able to negotiate to buy house for less than the listed price.
The rising inventory and falling prices means that discerning buyers can score deals on high-end property, for less than they could have otherwise. Recently, CNBC canvassed a few markets where luxury prices have dropped. In five major cities cited by Realtor.com, prices on luxury properties are now considerably lower than the firm’s luxury price index, which feature homes in the top 5 percent of that market’s range.