From The KCM Blog: "News Alert! The Luxury Market Has Returned"
News Alert! The Luxury Market Has Returned
There is no longer any question that luxury homes are beginning to sell. The high-net-worth client has marked 2010 as the year to again start purchasing real estate and their desire is turning into sales. Financing is beginning to open up in the ‘jumbo’ market and prices are starting to reflect true values as upper end foreclosures are starting to mount. What does this market have in store for us as we move forward in 2010? That will be determined by supply and demand.
DEMAND
Obviously, demand is increasing. The Wall street Journal reported:
After a near-disastrous 2009, the luxury market appears to be making a comeback, driven by growing buyer confidence, improved financing conditions and more-realistic seller pricing. Despite the housing downturn, attractively priced homes in some of the nation’s most coveted neighborhoods are selling, sometimes fast and sometimes with multiple offers. Nationwide, sales of homes selling for $2 million to $5 million in the first quarter totaled 2,461, up 32% from a year before, says CoreLogic.
Here is a graph from the Wall Street Journal article:
