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Falling Home Prices Hit Wealthy Neighborhoods

Up until recently, home prices in many wealthier neighborhoods continued to hold their own while prices in other locations around the country slumped. But that’s beginning to change. In 2009, home prices in such tony zip codes as Chicago’s Lincoln Park and New York City’s Greenwich Village are on track to fall 15 percent to 25 percent, according to a recent report by Forbes.com.

The lag in falling home prices is due to the relatively low unemployment in these areas, which results in fewer foreclosures that tend to hasten an area’s price declines. But the supply of overpriced, unsold homes in these markets continues to grow, which will accelerate home price declines as homes languish on the market, Forbes concludes.

The Boston Luxury Real Estate market is still very strong, we don’t see price reductions as much as more days on market.

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