Another market segment is showing signs of distress, as the sell off in equities has left its mark upon wealthier Americans, and the high-end housing market, can investments and exchange traded funds (ETFs) begin to stand their ground?
High-end home sales have seen a marked drop, although it represents only 2% of the housing market. Homes valued at $750,000 or more plunged 47% for the year ended November 2008, reports CNBC. Homes valued at $400,000 or less fell by 3% for the same period.
Prices are most likely to fall further due to the total impact of devalued portfolios and the uncertain job market. The National Association of Realtors reports that the December sales of homes purchased at a discount added to a spike in home sales, mostly in the South and Midwest.