Luxury home prices fell in the third quarter, while the rest of the housing market rose in price, Redfin said.
Prices of luxury homes fell 2.2% on a yearly basis, according to Redfin. Luxury homes are defined by Redfin as the priciest 5% of all homes.
Home prices for the rest of the market rose 3.8% in the same period.
One potential reason for the decline in luxury home prices could be that wealthy buyers and foreign investors are temporarily taking a respite from the market, due to volatility.
"High-end buyers are usually not weighed down by rates, mortgages or competition from other buyers, but they do look for deals," Nela Richardson, Redfin's chief economist, said in a news release. "It's a bellwether of slowing price growth for the rest of the market."
Luxury home prices fell at the sharpest rate in Scottsdale, Ariz., and Boca Raton, Fla. Both saw 15% declines on a yearly basis. Fort Lauderdale, Fla., reported a 14% decline. Redfin speculated that the declines in Boca Raton and Fort Lauderdale were due to a wave of luxury condos hitting the market at the same time.
Washington, D.C.; Denver; Delray Beach, Fla.; and Bend, Ore., all saw double-digit increases in luxury home prices in the same period.
