A few years ago, developers touted the mid-market sector — generally defined as units priced between $2 million and $5 million — as a sweet spot. Today, this price range is beginning to experience a slowdown thanks to an oversupply of inventory coupled with pent-up demand for units priced under $1.5 million. Of note, starting in early 2015, a similar softness hit the ultra luxury sector.
According to analytics site UrbanDigs.com, there are close to 1,400 listed properties between $2 million and $5 million, a 14.5 percent year-over-year increase. Meanwhile, these mid-market properties are sitting on the market for an average of 131 days — more than 20 percent longer than last year.
Adding to this softness is buyer wariness: many buyers looking in this range are predicting that the market will drop further.Share