In July, the home-price index fell to a five-year low.
On Friday, the benchmark benchmark price of $1.4 million was the lowest since February 2018, according to the latest report from brokerage CBRE.
The market was buoyed by a string of announcements this year by the likes of Chanel, Louis Vuitton, Gucci, and Alexander McQueen.
But while luxury-home buyers have been driving the market, the market for new luxury homes continues to suffer.
“It’s not the same as in the past,” said Kevin O’Connor, an analyst at CoreLogic.
“The new construction in the market is very, very small, and they’re not as affordable as the old ones.”
He pointed to a new trend for luxury-market sales.
The average sales price for new homes in the U.S. in August was $1,817,900, down $1 million from the same month a year ago, according the Real Estate Board of Greater New York.
“There are lots of new buyers, but they’re going for more than a million square feet,” O’Connor said.
“In a lot of places, the new construction is so small that you’re not going to see much in the way of new luxury housing.”
The trend is also seen in the new-home market.
For the third straight month, sales of luxury homes fell in August, according a CBRE report.
The median price fell 3.6 percent in August to $1-million.
The index has dropped from a peak of $2.9 million in June.
New listings were up 4.3 percent in September, to 1,891 homes.
The home-buying cycle is a mixed bag.
On one hand, there’s the continued boom in new-builds, which have been an increasing number of new homes for the past two years.
But the current slowdown in new construction means buyers have fewer options.
“We’ve seen the market shift to the ‘hot’ segment,” said Jim Hall, chief economist at RealtyTrac.
“People are going into the market looking for new housing, not necessarily luxury housing, but for a nice place to live.”
On the flip side, the supply of new housing has dropped to the lowest level in five years.
According to CBRE, the median price of homes sold last month was $2,897,800, down 8.7 percent from July.
And while the number of home sales is still up, the number is down more than 10 percent compared to a year earlier.
“Demand is coming back, but we’re still seeing a lot less of it,” Hall said.
The housing crash The current economic situation is also contributing to a slowdown in the growth of the luxury market.
The U.K.’s National Housing Federation predicts that demand for new construction will continue to decline in the coming months, though the number may be more optimistic.
“Construction activity is going to be lower in the next couple of years, but that’s going to continue,” said David Smith, chief executive of NHF.
“If the recovery from the housing crisis continues at the current pace, it will take a long time to recover from the current housing bubble.”
In July 2018, construction accounted for 25.7 million new homes, down about 9 percent from the year before.
However, the NHF is forecasting that demand will start to rebound as the economy improves.
“That will be a significant driver of new construction, and the recovery will be gradual,” Smith said.
In August, construction was down 8 percent, according CBRE’s latest report.
In September, it was down 9.7%.
In the U, the U-turn continues As the U.-turn continues in the housing market, new-builders have been hit with stiff competition from home buyers, particularly in London.
“This is going back to the market that we have in the last decade or so,” Smith pointed out.
“Now we’re seeing a more diversified supply and less supply.”
In 2018, the average number of homes built per year in the capital dropped to 1.2 per week, down from 2.6 per week in 2017, according To Build, a firm that tracks new home sales.
That’s still up from a rate of 1.4 per week during the height of the housing bubble.
But it’s less than the rate of 2.8 per week the previous year, which has also seen a drop in new home construction.
In addition, the numbers are down from a year-over-year increase of 1 percent.
New home sales are down 1.3 per week over the past 12 months.