Marred by inflation, elevated interest rates and recessionary fears, luxury home sales saw a significant decline in the three months ending Nov. 30, with a drop of 38.1% year over year.

This marks the largest decline on record, surpassing the previous record of 31.4%, according to recent data issued by Redfin Corp.

The pullback in luxury sales has led to a larger number of homes on the market, with approximately 163,000 luxury properties for sale during the same three-month period.

Where Is It Happening?

Coastal markets, particularly Long Island, New York and California, have experienced the largest declines in high-end home sales.

In Long Island, luxury-home sales plummeted 65.6% year over year during the three months ending Nov. 30, the largest decline among the most populous U.S. metropolitan areas.

In California, San Diego high-end home sales fell 60.4%, San Jose saw a 58.7% drop, Riverside dropped 55.6% and sales in the Anaheim area fell 55.5%.

With the housing market still in a downturn, new companies have innovated ways for investors to enter the market. Here’s how you can invest as little as $100 in a rental property to earn passive income and build wealth over the long-term.

Read also: Why This Housing Downturn Isn't Like 2008

Could A Steep Decline In Luxury Sales Mark A Bottom In The Market?

It could be; according to Redfin’s Homebuyer Demand Index, mortgage applications and other early-stage home buyer services have ticked up as interest rates decline.

“There has been a small shift in the market that’s not fully showing up in the data yet. With mortgage rates falling, a lot of house hunters see this as their moment to come back and compete,” said Redfin agent Shoshana Godwin.

“Many of my buyers are taking out jumbo loans — mortgages typically used for purchases of high-end homes,” Godwin said. “While some data shows jumbo mortgage rates above 6%, some of my buyers are getting rates in the low 5% range.”

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