When luxury clientele are keen on buying property to take advantage of the current state of the market, it is a positive sign for all. What this signifies is that clearly deals are still out there to be had. Although prices have been on the rise, the fact of the matter is they are still rising nationwide and have yet to reach their peak. Just as yesterdays blog post informed us, buying today is a wise decision given that it will be less affordable to buy the same property in a years time.
Today, one-third of luxury consumers, those with a gross annual income exceeding $250,000, insist that they are actively trying to purchase real estate either for personal use or as an investment over the next twelve months. Most of these mega wealthy individuals expect that if they were to purchase a property today, its value would appreciate by 14% over the next five years.
With it being such an advantageous time to buy given the low mortgage rates, demand for property has soared. Now that there is a surplus of prospective buyers, sellers have returned to the market thus deploying much needed inventory back into the system. According to the Institute for Luxury Home Marketings most recent Market Action Index, with more options to now choose from, luxury buyers are in a far better situation to buy now than they were even just three months ago. While the added inventory may see prices still ascend however at a slower pace, the increased availability of homes for sale provides further encouragement to all buyers who are currently on the fence about testing the market.
More Information: Real Estate Economy Watch