Growth in million-dollar home sales is slowing in areas including Miami, Las Vegas and Los Angeles, as rising prices and the strengthening U.S. dollar discourage foreign investors who helped lead the recovery.
In seven investor-heavy markets – the Los Angeles, Riverside and Ventura areas of Southern California; Las Vegas; and Florida’s Fort Lauderdale, Miami and Orlando – sales of homes for $1 million or more rose 5 percent in the third quarter from a year earlier, compared with a 46 percent surge in the same part of 2013, data compiled by brokerage Redfin Corp. show.
Luxury sales, which have been outpacing the total market, are beginning to slow in many of the areas most dependent on investors and other cash buyers. Foreign shoppers are now facing a weakening global economy, less favorable exchange rates and higher U.S. home values.