In a recent article by MSN, the tables have turned and the real estate industry as luxury home prices finally fell for the first time since 2012. According to Redfin, the drop in prices comes from wealthy buyers and foreign investors refusing to pay top dollar for luxury properties. These prices fell by 2.2% in the third 1:45 thousand 15 compared to just a year ago.
Luxury homebuyers don't purchase a property because they need a place to live, they purchase a place because the market is favorable and there is an adequate chance of equity increase rapidly. The all-time high in 2006 should not be an indicator of where the market will be going. The luxury home buyers market is healthier than it ever was, especially in 2007 and 2008 when the market crashed. It's more stable, less erratic and will provide long-term value stronger than ever.
Of those that watch the market closely, knowing that the federal government will raise the interest rates and increase mortgage prices further, the luxury market realizes that this will not affect them as greatly. A lot of transactions are all cash in the luxury home market and even the slight short-term interest increase doesn't affect the mortgage rates in a very significant way.
Over the last couple of years many real estate agencies and major metropolitan markets across the country have seen excellent luxury home price increases and sales and specifically for the Portland area. There are several high-end, luxury condominium buildings, complexes and luxury estates throughout the Portland Metro area and surrounding communities that continue to increase in value greatly. Even though the interest rates are set to rise in 2006, and potentially be near 5% by the end of the year, this really shouldn't affect the luxury real estate market too greatly.
If you're in the market for a luxury home in the Portland Metro area please browse the website for all listings that qualify for this category or contact my office today for a customized list of homes and real estate that meet your search criteria and price.