3 Reasons to Buy Luxury Property THIS Year!!
The housing market is hot, with prices rising as demand far outpaces supply in almost every region. However, when it comes to luxury real estate, things are quite different. In the upper-end market, inventory is plentiful in most locations.
For that reason, prices haven’t skyrocketed as they have in the lower and mid-tier markets. This, coupled with sensational mortgage rates, means that this may be the perfect time to purchase the luxury property you have always desired.
Let’s break it down into the three major reasons to act now:
1. There are more homes from which to choose
According to a recent Wall Street Journal article, inventory in the upper end is increasing, while it is decreasing at the lower and mid-tier price ranges. Here is a graph showing the average increase/decrease in inventory for the first four months of this year as compared to last year:
2. Prices are becoming more reasonable
In a separate article, the Wall Street Journal also talked about prices in the luxury market. They explained that downward price adjustments have been more common in the luxury market than in markets with lower prices. They went on to say:
“The growing number of price cuts suggests luxury-home sellers are becoming more realistic about property values as sales have slowed, said several real-estate veterans.”
Not only will you have more to choose from, but you may also be able to get the property at a reduced price.
3. Mortgage rates are at historic lows
In the past, one of the drawbacks to purchasing a luxury property was the larger mortgage rate on “jumbo” loans which are often required on high end properties.
However, HSH.com just revealed that jumbo rates just set new record lows:
“While conforming fixed-rate mortgages eased a little this week, 30-year fixed-rate jumbos declined enough to break into new record low territory (3.66%), besting the previous low set in April by two basis points.”
Bottom Line
More choices, better prices and historically low mortgage rates may make this the perfect time for you to own one of those luxury properties you and your family have always fantasized about.
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such a good time for buy home it’s best period ever for buying property.
My friend was looking at a few luxury houses, and was telling me that he wanted to make sure it was good to buy a luxury home. It’s interesting that prices for those houses are actually starting to go down. It would be nice for him to be able to save a little on a nice house.
The housing market is hot, with prices rising as demand far outpaces supply in almost every region. However, when it comes to luxury real estate, things are quite different. In the upper-end market, inventory is plentiful in most locations.
I didn’t realize that mortgage rates were at historic lows. That is pretty great news as my wife and I are thinking about make a home purchase. We never thought that things like luxury homes would be available to us, but maybe we should just look harder. Do you have any advice about finding someone to help you with a luxury house?
Hi Johnny,
Thanks for reaching out! We suggest that you contact a local real estate professional who will be able to help you on the path to homeownership!
– The KCM Crew
I had no idea that prices for luxury homes haven’t skyrocketed as they have in the lower and mid-tier markets. Owning a luxury home would be so nice because usually luxury homes have all the amenities you want right there and it makes life more comfortable. If the market is right for luxury homes right now, it might be a good idea to invest in one now so you can have it for later.
I’m trying to decide when to buy luxury property. I didn’t realize that now was the best time! It definitely seems like there are many to choose from. I’ll start looking!
A friend of mine has been looking at some very nice homes, and I was curious about how it would benefit him. It’s interesting that mortgage rates are actually at a low right now! Since he is trying to save a bit of money on it, it would be nice to know he won’t have to spend as much.
Wow, it’s interesting that the luxury market has become more affordable and that you now have more options to choose from. As far as I know, having this reduced price will definitely allow more people to get involved in this market and possibly find a great luxury home. I’m excited to see what will happen due to this change.
Great article!
I liked that you mentioned there are more luxury vacations to choose from. My husband and I are thinking about how to choose the right property to buy, and we are looking for advice. I will let him know about your recommendations to choose the right luxury property.