Zillow finds a bright light: Luxury home market

In luxury home markets, bidding wars are back and homes are selling quickly, serving as a stark contrast to everywhere else.

“Luxury is the best performing segment of the housing market right now,” said Stan Humphries, chief economist for Seattle-based Zillow.
Prices of $1 million-plus properties have risen 0.7 percent since February. Meanwhile, prices of homes under $1 million have fallen more than 1.5 percent, according to Zillow.

International buyers are a big part of the rebound in the luxury market, housing experts say. Foreign buyers purchased $82 billion worth of U.S. residential real estate last year – an increase from $66 billion in 2009. In Florida, foreign buyers now make up a third of all home purchases, up from 10 percent in 2007.