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The weakness in the high tier stands in stark contrast to the subprime implosion days when lower priced homes were taking all the abuse. But such a turnaround was not unexpected considering that lower-priced homes have enjoyed substantially higher sales volume in recent times.
For a while now I’ve been taking occasional looks at how fast cheap homes were selling in comparison to expensive ones, and while the trend had moderated quite a bit as of the last update, demand was still notably higher for low-priced homes. This greater demand naturally has translated into stonger price trends. (Unfortunately, I am no longer able to update that particular analysis because the Union-Tribune stopped publishing the data — my theory is that their new owner needs the money for chest waxings). To the limited extent that we can draw conclusions from a single month’s data, it appears that as we head into housing’s slow season the weaker demand for higher-priced homes may finally be taking a toll.