Luxury Home Prices Still on the Decline
If you have waited to buy a luxury home, your wait has paid off, as reports show that the prices of luxury homes continue to decline. It doesn’t matter where you live, if you have a luxury home, the value of your home will be tied to the stability of the job market and the strength of the real estate market at lower price points. If the markets in the lower price points are not doing well there simply will not be as many move up buyers to purchase the luxury home.
Of course, if you are referring to the $5M and up luxury market, that’s a different ball game. At that price point, it’s not a matter of the lower en markets performing. These buyers usually buy with cash and don’t need to sell other property to purchase. In this case, buyers make decisions based on their overall outlook on the general economy. They are business owners and C-level executives who know that their incomes are dictated, not by how many hours they put in at the office, but by how their businesses are going to be affected by the economy in the next 3-5 years.
Here’s an article that ran in the Los Angeles Times on December 13, 2010 by Lauren Beale. After you read the article, feel free to come back here to this page and leave a comment.
CLICK HERE for article. Or you can cut and paste this link into your browser: http://www.latimes.com/business/la-fi-luxury-housing-market-20101213,0,1547660.story?track=rss
Aaron Zapata, MBA
Realtor with Prudential CA Realty
Looking for a home? Visit www.AaronZapata.com to search directly in the MLS.