Thread by @WSJRealEstate

Real-estate agents in places like New York, Los Angeles, and the Hamptons say the frenzied deal making and record-setting have eased, thanks to a growing disconnect between what sellers want and what buyers will pay. wsj.com/articles/even-…

Luxury homes—defined as the top 5% of the market—that sold during a three-month period from Feb. 1 to April 30, 2022 dropped 18% compared with the same period in 2021, according to @Redfin.

That is the biggest decline since the pandemic started. on.wsj.com/3xNALZ7

Prices are still holding, but they are unlikely to keep reaching new heights as buyers retreat, according to Sheharyar Bokhari, a @Redfin senior economist. Further, he said, deal volume is finding a new equilibrium. on.wsj.com/3xNALZ7

Two years ago, Austin #RE agent Amy Deane was working with so many out-of-state buyers that she showed one $15 million house 5x in 30 days. Now, she might get a call every other week for showings in that range. “That big buyer pool has slowed down." on.wsj.com/3xNALZ7

“We had unsustainable, huge demand last year. Homes were just flying off the shelves.”

In April, Boston real-estate agent Michael Carucci listed a condo for $18 million. But Mr. Carucci said he’s only had a handful of showings. “I expected more." on.wsj.com/3xNALZ7

By the end of 2021, contracts on Manhattan properties at $4M+ hit levels not seen since at least 2006. But stats have been trending down since the first week of May. Of 43 contracts signed that week, none was above $10M for the first time since Sept. 2020. on.wsj.com/3xNALZ7

What's behind the slowdown? Buyers are grappling with inflation, this year’s interest-rate hike and a volatile stock market. Gas prices and the war in Ukraine are adding to feelings of economic uncertainty, effectively throwing cold water on luxury sales. wsj.com/articles/us-in…

“The narrative I’ve been talking about for a year—of sales being restrained by lack of supply—is not the story anymore,” says @jonathanmiller. Instead, price growth & higher interest rates are slowing intensity. With fewer sales, inventory is accumulating. on.wsj.com/3xNALZ7

.@RyanSerhant says that many big-money spenders have already snapped up homes and now the market is regaining balance. “I don’t think it’s normal—or healthy—for a house to sell in an hour,” he says. “It’s OK if it takes a little longer than a day.” on.wsj.com/3xNALZ7

.@Compass agent Richard Steinberg said he sees the greatest reduction in activity on properties priced between $2M and $5M, a price range in which he says buyers typically rely on mortgage financing and are dealing with increased interest rates. on.wsj.com/3xNALZ7

.@NestSeekers' Erin Sykes described these few weeks as a “reality check” for those who want 20% to 30% price appreciation on their home in a few months.

"They saw it as a game that could never be lost and we all know that real estate is not invincible." on.wsj.com/3xNALZ7