A report from Fortune. "The top 1% is pumping the brakes. Weak auction sales at this year’s Monterey Car Week is just the latest example of how spending at the top of the economic pyramid is shrinking, as many of the highest-priced cars went unsold. From high-end New York real estate, to fine art, to now, classic cars, the ultra-wealthy have curbed their profligate spending in a big way this year, sending asset prices tumbling across the board."

"This obsession with perfection has become far more profound in recent years as the classic car market has morphed from a niche hobby to a legitimate stand-alone asset class, with cars selling for tens of millions of dollars. As such, many classic car enthusiasts have found themselves priced out of the market in recent years by investment groups and speculators hoping to make a quick buck flipping the cars back into a hot market."

"This investment thesis was predicated on the view that both the market size as well as the value of these super cars would continue to rise indefinitely, which, of course, is never a great idea. 'The reserves are too damn high,' one major car collector, who didn’t wish to be identified, told Fortune. 'I held the high bid on a lot of cars today but I didn’t win any of them because of these crazy reserves. I’m not going to bid against myself, so the car goes unsold.'"

"When you step back and look at the broader asset market, it is clear that the rich are curbing their spending for nearly everything. For example, sales at fine arts auctions are down 20% in the first half of 2019 compared with the same time last year, according to artprice.com. Housing prices in London fell 4.4% in May compared to the previous year, marking the lowest annual drop since August 2009 at the height of the Global Financial Crisis, according to the UK Office of National Statistics. Prices for high-end Manhattan real-estate fell 5% in the second quarter of 2019 compared with the same time last year, with sellers offering their largest discounts in nine years, according to Brown Harris Stevens."

From Palo Alto Online in California. "Total transaction volume dropped close to 30%, along with a 6% decline in the median price of homes sold in Palo Alto, which is now $2.9 million, according to the Multiple Listing Service. The most recent peak of Palo Alto's median home price was in April 2018, at $3.1 million, which dropped quickly to $2.79 million by the end of 2018."

"While $2.9 million in the first half of this year appears to be a minor rebound from the end of last year, with seasonality factored in—i.e., we normally see higher prices in spring—it's logical to conclude that home prices in Palo Alto are heading south."

"There have been many other indicators of a softening real estate market. For instance, 70% more homes listed in the first half of this year dropped their prices, compared to the same period last year. Average days on the market for homes sold also increased from 14 in the first six months of last year to 21.5 this year. Among the 63 active listings in Palo Alto as of July 24, there were 13 properties that have been on the market for more than 100 days. Homes have been selling much more slowly across all price segments, and especially at the high end. Sixteen homes were sold above $5 million in the first half of this year, compared with 35 last year."

"Lack of inventory was the main driver of the strong sellers' market for a very long period and was the main reason for seemingly ever-higher home prices in Palo Alto. However, shrinking demand has led the market since the latter half of last year. In my column dated July 12, 2018, I predicted that the 'U.S.-China trade war could impact home sales.' The prolonged trade war appears to have finally started to affect our local property market."

"Since the trade war kicked off, I've heard from many of my Chinese buyers that they have been forced to reconsider whether to continue operations in the U.S. or not. Silicon Valley had been the ultimate destination for Chinese capital, especially after the 2008 financial crisis. High home prices in Palo Alto, unfortunately, were an unwanted byproduct of it. But at least for now, Silicon Valley seems to be losing its attractiveness to Chinese capital. The low enrollment of overseas students at our local summer camps is another sign of the drastic change."

From Patch New York. "The Sands Point estate often cited in reports as the mansion that inspired the East Egg in F. Scott Fitzgerald's novel 'The Great Gatsby' is still on the market. The stunning 14-bedroom home, located at 235 Middle Neck Rd. on Long Island's 'Gold Coast,' is going for $13.89 million."

"The home last sold in May 2012 for $6.7 million. After some renovations, it was put up for sale in December 2016 for $19.8 million. The price dropped to $16.9 million in August 2017, then was relisted again for $13.9 million in June 2018."