Current Financial Trends in the Luxury MarketJuly 18, 2011
We are now well into the Spring-Summer home buying season and market reports reflect that on the National level, the pace of our housing market is showing a much welcomed rise as to the previous eight months! Also noteworthy is the trend showing that luxury home buyers are utilizing the attractive incentives of the low interest rates of super-sized mortgages because they are cheap as compared to smaller conforming loans backed by Fannie Mae and Freddie Mac as well as other federal agencies.
In-fact, jumbo loans accounted for almost one in every six new mortgages, including new home purchases according to Mortgage Finance and typically require a down-payment of 20% to 30%. It is important to note that many reports are saying that the government backed loans will most likely reduce to a $625,500 limit by the end of this financial quarter.
Miami’s positive upswing in luxury home sales is also evident in the level of activity and requests for showings for my luxury listings in Coral Gables, Coconut Grove and Miami Beach. To see all my luxury home listings, download our free iPhone app available through iTunes.