Luxury Home Market up 21%
Home sales this year have been steady, but narrow the market and focus on only the luxury sector, and the stats are completely different. The luxury home market has kept up with the pace pretty well and leads the housing recovery.
An industry expert told the press that during the time in which home values dropped and the housing market toppled down, investors started focusing on luxurious properties and incorporated it in their portfolio.
According to a survey conducted by a real estate website, the most expensive homes in the United States have enjoyed an increase of 21% in their sales. Compared to 2013, this value is a rise by 35.7%. Now consider the rest of the market, and you will notice a drop in sales which is around 7.6%. See how well the luxurious sector has been fairing?
Another study claims that there are over 9 million millionaires in the country, and they love to spend. The National Association of Realtors claims that sales of homes which are priced greater than $1 million have increased by around 8%. As for homes which cost less than $250,000, sales have dropped by 12%.
Luxurious purchases are not only about buying huge, sprawling mansions. They also imply that people are moving into areas which are known for their luxuries. In all these regions, home prices are higher than what is seen in other parts of the country.
Apparently, it does seem that wealthy people are spending and are glad that the economy is heading towards recovery. However, the episode of the past still has not been forgotten and people are being cautious about where they put their money.
A real estate expert told us that in every region, luxury market has different references. In some, it covers the priciest of houses and in others, it just implies to the markets. He added that in certain areas, a luxurious house could be worth $5.3 million and in other areas, that same house will be worth around $861,000. The difference in prices is highly dependent on the area.
A home designing professional said that luxury also implies those features which have a story behind them. For instance, if someone has used imported marble from France in his house and has gotten his carpet from some other corner of the globe, he will regard these as luxuries.