Lagging Demand for Luxury Homes May Mean Deals for Buyers Slowing sales of high-end homes gives potential buyers more bargaining power.

A surplus of high-end homes for sale is giving more bargaining power to buyers.

In the U.S., the inventory of homes priced from $500,000 to $750,000 rose 15.9% in March compared with the same period last year, according to the National Association of Realtors. The inventory of homes over $1 million rose 12.6% year over year. Inventories dropped in April, likely due to the seasonal pattern of spring sales and perhaps some buyers taking advantage of deals, but real-estate agents say they are still seeing more expensive homes sit longer than midrange and lower priced homes.

Behind slowing sales at the upper level: Stock-market volatility has made wealthy buyers more cautious, and there are fewer foreign buyers than last year due to the dollar strengthening and other economic issues overseas, says Lawrence Yun, NAR’s chief economist.

The stock market has come back up, but we don’t know yet if that means the upper-end home buying market will begin to return,” Mr. Yun says. ( News Corp, which owns The Wall Street Journal, also owns, the listing website of the National Association of Realtors.)

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