WASHINGTON — The global luxury-housing market lost some of its sheen last year as financial markets became unsettled and many wealthy buyers began to look for less expensive homes.
“The return of realism” — that’s how Dan Conn, CEO of Christie’s International Real Estate, described the high-end market that stretches from San Francisco to Singapore.
Sales in a sector whose average home prices start at $2.2 million slowed in 2015, increasing by 8 percent, half its 2014 pace. The decline most likely reflects stability rather than weakness, according to a report Thursday by Christie’s.
Properties in London and Hong Kong are sitting on the market longer. On average, homes sold for prices 19 percent below the original asking price, compared with 14 percent below the asking price in 2014.
“You can’t have massive double-digit growth year after year after year,” Conn said.
A luxury market that experts say is normalizing still looks otherworldly when compared with conventional real estate. Some homes have cigar rooms with specialized ventilation and wine collections displayed in climate-controlled glass walls.
