Sales of homes priced $1 million or above dropped 4 percent in July compared to a year ago, according to the National Association of REALTORS®. The entry-level and middle parts of the housing market, on the other hand, are much more active due to low mortgage rates and high buyer demand, NAR reports.
“Existing sales above $1 million were down a bit in July. This was in large part due to the stock market volatility seen earlier this summer leading up to and immediately after Brexit,” says Lawrence Yun, NAR’s chief economist. “The financial markets have stabilized since then.”
But some housing experts still question whether the luxury sector will remain sluggish.