The luxury home market keeps getting better because the economy as a whole is getting better, but there are a few nuances and issues that make things look particularly rosy for those fortunate enough to participate in the luxury home market.
While average Americans may not realize just how hard the economic downturn that started in 2007 hit the richest people in the nation, the severe impact had been showing clearly in the luxury housing market until recently. Just a year ago, a large portion of the luxury homes on the market were still distress properties, especially in the hardest-hit cities.
Today, analysts suggest that there are now so few foreclosures i4n this class of homes that distressed properties aren’t really an issue anymore. Without foreclosed homes bringing th market down, price points can rise unimpeded.
Short sales are still an issue, but there any many fewer of those than just a year ago too.
No More Presidential Concerns
A quick Internet search is all it takes to reveal articles touting improvement in the luxury housing market in just about every city in America. Things are looking up in Miami, in Austin and in Dallas too. There are positive signs in the Midwest and in the Northeast.
One thing that slowed sales of expensive homes in 2012 was the presidential election. While those who don’t follow politics closely may find it surprising that uncertainty about who will guide the country for the next few years makes any difference at all, there were people on both sides of the political spectrum who were genuinely concerned that the wrong man would be elected president.
It happens every time there’s a hotly contested presidential election, including in 2008, according to experts.
With that issue now decided for four years, that factor is out of the mix, releasing the market from another potential concern.
So Much More
In many areas, there’s still a glut of luxury homes on the market, but that’s starting to clear. And that clearing is a good sign. Luxury home buyers who insist on a discounted property may still be able to find something to satisfy their needs, leaving premium homes that are just coming onto the market for buyer who are just entering it.
In some cases, homes are coming onto the market now because sellers are finally no longer underwater with their luxury home. In addition, their business interests have recovered to the point that they can afford the move up or the move to another city that they were planning before the economic downturn, creating more sellers and more buyers.
Luxury homebuyers choose their homes almost exclusively because of location, so that means the news is especially good for those who are selling in popular places. And because people have an increasing interest in walkable communities and neighborhood shops, buyers with money are also now considering nicer homes in traditional neighborhoods too, helping the overall real estate market.
It’s a rare moment when home-buying conditions are great and home-selling conditions are pretty good too. The luxury homes market is benefiting from this balance just as much as other housing markets — if not more. And all indicators point to even more improvement in the economy and even stronger home prices.
- Luxury home sales in Denver area rise in January over last year (denverpost.com)
- Miami Ranks Among Top Global Markets for Luxury Homes (hispanicbusiness.com)
- Regent Property Group Reports Austin Has Almost Doubled its Luxury Homes Sold this Year (prweb.com)