It's likely that most people willing to pay $5,000 a month to get a million dollar house are at least able to pay an additional $800 a month. They may not like

It's likely that most people willing to pay $5,000 a month to get a million dollar house are at least able to pay an additional $800 a month. They may not like it, but people in million dollar houses can usually find a grand a month extra if they really need to. Buyers already at the absolute upper edge of their possible budget are a non-zero proportion of total buyers, but not a large enough proportion to force prices to drop, at least not yet, at least not at that already lofty price range. Price elasticity of demand is likely greater at lower prices, where the buyers don't have much in the way of reserves and excess income.