The price index for luxury homes in 46 cities declined 0.4% year-over-year, the first drop since 2009. That’s a sharp reversal from 10% growth seen in Q4 2021.
“The slowdown in growth has overwhelmingly been driven by sharply higher interest rates following recent tightening in global monetary policy,” Knight Frank analysts wrote.
New Zealand’s housing market posted the biggest slump, with luxury home prices in Wellington, Auckland and Christchurch falling by double digits. Major cities including San Francisco, New York, Los Angeles, Hong Kong and Vancouver also saw prime prices drop.
Still, the majority of cities tracked by the firm saw prices increase in Q1, with Miami and Dubai posting double-digit gains. Prices in Dubai surged 44%, bringing its total pandemic-era growth from March 2020 to 149%.
So much for the consequences of Russians moving en masse to Dubai.