Why the Luxury Housing Market Is Hot

The luxury housing market is downright hot in several markets. The Port Aransas area of the Texas coast saw sales increase 40% year-over-year!

Why the Luxury Housing Market Is Hot, Hot, Hot

The National Association of REALTORS® (NAR) recently announced that sales of properties worth more than $1 million increased by almost a third in 2013 nationwide compared to the previous year.

For most of us, the economic recovery has been slow but sure. For the 1 percent, it’s already occurred. Now they’re shopping.

  1. First, the stock market is going gangbusters. While naysayers predict a plateau, it still has plenty of room to grow. Knowing a client’s relationship with the stock market (if they are investors) is always useful.
  2. Just keep in mind that our luxury survey found that 75 percent believe that investing in a home is actually more a sound investment than the stock market itself!
  3. Second, foreign wealthy buyers are on the march, especially in cities in the South and West, where South American and Asian tycoons are investing in real estate.
  4. International buyers represented 23 percent of all home sales in Florida. Given the difficulties of non-U.S. residents obtaining loans, they tend to pay in cash, too.
  5. Lastly, builders are swarming into the luxury home market after years of sitting on the sidelines, giving the wealthy more options.
  6. The new builds won’t depress prices anytime soon, however, according to Toll Brothers, because inventories are still low. Getting in on luxury new builds is a path to success.

If you’re looking to learn more about the luxury market audience, don’t forget to check out “Keeping Up with the New Joneses: Redefining Luxury” article in the Real Estate magazine, for luxury survey findings, and what we’ve learned about what drives homebuyers and sellers in this niche market.

About Michael Stuart

Mike's experience in the technology industry is quite extensive, serving both as a designer of complex enterprise applications and as a corporate executive. In his previous life, Mike was founder and CEO of AssetWorks Inc. the industry leader in facility management solutions. Currently living on the Texas coast helping with digital strategies using Amplified Content Marketing.