The current real estate market is experiencing a unique situation where the inventory of luxury homes is increasing, while the demand is decreasing. This trend is evident in the Columbus Board of realtors data, which shows that the active inventory of luxury homes priced over 500k is up by 20% compared to 2022. On the other hand, pending sales for this price point are down by 46% compared to 2022.

One of the reasons for this trend is the "lock-in" effect experienced by homeowners. Many current homeowners have interest rates under 4%, which has caused them to stay put in their current homes rather than move up into larger, more expensive homes. As a result, luxury home demand is slowing, leading to an oversupply of higher-priced properties with an increase in the days on the market.

However, this trend may present an opportunity for buyers who are in the market for a luxury home. With an oversupply and decreased demand, buyers may have more leverage in negotiations and may be able to secure a better deal. Additionally, longer days on the market may allow buyers to take their time and find the perfect luxury home for their needs.

Sellers of luxury homes may need to adjust their expectations and be more flexible with pricing and other terms of the sale. It may also be beneficial for sellers to work with an experienced agent who can help them price their home effectively and prepare it for a quick sale. With low demand and high inventory, high-end sellers may need to be creative in their marketing efforts to attract potential buyers.

Jasson Farrier is a real estate investor and licensed Realtor with Kiger Realty in Ohio. He can be reached at jassonfarrier@gmail.com or 614-699-3007.