Reblogged from Mortgage News Daily – Jann Swanson
It’s not exactly a startling concept but one that has been underlined by recent events; there is a strong correlation between the performance of the stock market and sales of high-end homes. Sam Khater, CoreLogic’s deputy chief economist, says that as the stock market "swooned" in recent months, so did sales of million-dollar plus houses. This has been the case in the past and the trend is apparently continuing.
Writing in the company’s Market Trends blog, Khater says that as the stock market rose rapidly between 2009 and 2015 it drove a large increase in the sales of high tier homes. Million-dollar plus homes have historically had an average share of 1.2 percent of the market. As more people became homeowners during the housing bubble the spread between stock market equities and expensive home sales shares widened but then those sales and the S&P began to move more in unison.
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