The national luxury housing market remains weak with a high inventory of homes priced above $1 million on the market along with a decreasing numbers of buyers.

Practitioners say that while some sellers are simply waiting until conditions improve, many are accepting steeply discounted sale prices so that they can move on.

The hardest hit have been the lower-end wealthy with homes priced at about $3 million, says Cora Berkery, an associate with Surterre Properties in Orange County, Calif.

The good news is property is selling, if at a huge discount, Berkery says. Most of the buyers we're seeing are foreign investors from the Far East and, now that the euro is stronger, we're seeing more Europeans too.

Source: Reuters News, Nick Carey (10/14/2009)