There is an old adage that applies to the current real estate market. That which falls most during a recession is normally also what rises quickest. This certainly applies to home sales. Homes worth over $1 million the brunt of the real estate down turn over the past five years. Some reliable sources estimate that home is the $1 million plus market took an average 46% loss. I am familiar with many market win which the values dropped 70% in the luxury market. However, these homes are now rebounding at an astonishing rate. Investors who had available funds, purchased the homes as values dropped and the investors also took advantage of historically low rates. Now, as those homes rise in value, investors consider whether to cash in or hold on as interest rates inch upward.
According to real estate research firm, DataQuick Inc., million-dollar homes are gaining at triple the pace of others. Those homes gained an average of 37% in first half of 2013 compared to 2012, which is also the highest level since 2007. Homes sold for under $1 million also rose, but only 11% during the same time period. The National Association of Realtors said million-dollar homes accounted for 2.4% of home sales in June 2013, which is way up from 1.3% early last year.
Analysts opine this is due to the wealthiest people holding off until they were confident about the recovery. These people may have done very well with other investments over the past few years, and they may be looking to begin investing in real estate once again. After all, home interest is still a significant tax deduction (for now at least). DataQuick names the Seattle area as a prime area for million-dollar home price increases, at 61%. Sacramento, San Diego, and Charlotte were also identified as prime areas feeding the increase.
Paddy Deighan J.D. Ph.d
http://www.homesavers.pro
According to real estate research firm, DataQuick Inc., million-dollar homes are gaining at triple the pace of others. Those homes gained an average of 37% in first half of 2013 compared to 2012, which is also the highest level since 2007. Homes sold for under $1 million also rose, but only 11% during the same time period. The National Association of Realtors said million-dollar homes accounted for 2.4% of home sales in June 2013, which is way up from 1.3% early last year.
Analysts opine this is due to the wealthiest people holding off until they were confident about the recovery. These people may have done very well with other investments over the past few years, and they may be looking to begin investing in real estate once again. After all, home interest is still a significant tax deduction (for now at least). DataQuick names the Seattle area as a prime area for million-dollar home price increases, at 61%. Sacramento, San Diego, and Charlotte were also identified as prime areas feeding the increase.
Paddy Deighan J.D. Ph.d
http://www.homesavers.pro
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