The high-end property segment in the Bay area suggest the worst is on its way for the region’s upscale market.
From SFG: So far, prices for top-end properties aren’t declining more or faster than the market as a whole, based on….research firm MDA DataQuick. But strains are becoming evident on that end of the price spectrum.
In the Bay Area, the months of unsold inventory of existing single-family homes priced above $1 million reached 14 months in March, more than double where it stood a year ago, according to the California Association of Realtors.
In contrast, inventory of homes priced below $500,000 fell to just 2.6 months, a nearly 80 percent decline. The same general trends were seen on the state level as well.
In the last few months, the well-to-do have watched their businesses unravel, jobs disappear and net worth shrink…These trends are pushing more expensive homes onto the market precisely at a time when there is little appetite for them..
The months of unsold inventory for existing single-family homes…are rising rapidly for high-end homes in the Bay Area and California, even as the figures decline for moderate and low-priced homes. [Slowing price declines on moderate homes fuel hope that the real estate bottom is near.]