Luxury Real Estate’s Steady Climb in a Depressed Housing MarketSeptember 30, 2011
Economists’ are forecasting a lost decade in which home prices recover a fraction of what was lost between 2005 and 2015. One in five home owners with a mortgage owes more than their home is worth. Earlier initiatives encouraging banks to voluntarily modify mortgages haven’t reached as many borrowers as hoped, which is partly due to the high unemployment.
The bust has hit some markets harder than others with home owners unable to relocate for new jobs because they owe far more than their homes are worth. However, Miami seems to be ahead in the luxury real estate arena with higher percentages of increased sales of 38% for the $1,000,000 and 43% increased sales in the $3,000,000 markets.
Source: Wall Street Journal; Facts and Trends™