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!
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.
- 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.
- 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!
- 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.
- 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.
- Lastly, builders are swarming into the luxury home market after years of sitting on the sidelines, giving the wealthy more options.
- 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.