LUXURY HOMES ARE STILL SELLING STRONGDecember 8, 2008
We’ve been hearing about the slowing real estate market in the news lately. In spite of the general slow-down, the high-end luxury market is still going strong. Homes priced above $1 million are steadily growing in value and are predicted to keep doing so at a healthy pace for the foreseeable future.
The old adage, “location, location, location” applies particularly well to high-end real estate. Most luxury properties are built on premium sites close to popular amenities and activities and offer stunning, one of a kind views. These properties will always be in high demand, even in a slowing economy.
High-end buyers tend to have available cash for a sizeable down payment and better credit rating, so loans are easier to obtain. And foreign investors are taking advantage of the drop in the value of the dollar by snapping up available luxury properties while they are affordable.
In the midst of the general housing slow-down, there are some bright spots for savvy investors.