Scarce financing for so-called jumbo loans and plunging property values have frozen the market for million-dollar homes, a real estate research firm reported Tuesday.

Sales of homes priced at $1m or more were down 43% in California last year, according to MDA DataQuick in San Diego, which attributed the drop to tight credit markets that made it more difficult to finance such large purchases.

The million-dollar market's sluggishness occurred as home sales overall rose statewide.

Los Angeles Times