It’s starting to feel as if there are two housing markets. One for the rich — and international buyers — and one for everyone else. Think of this housing market as bipolar. In the luxury sector, the recession is a memory; sales and prices are rising. Everywhere else, the market is moving sideways or getting worse.
In this land of luxury properties, the Great Recession seems over. Prices of $1 million-plus properties have risen 0.7% since February, according to Zillow. Prices of houses under $1 million have fallen more than 1.5%. Normally, these two segments of the housing market rise and fall together. Now, they’re moving in opposite directions.
“Luxury is the best performing segment of the housing market right now,” says Zillow.com chief economist Stan Humphries.