18 Jun Luxury Housing Market Showing Positive Signs
Recent reports show that the luxury housing market is showing a strong recovery from the housing crash of 2008.
A WSJ.com article reports that several regions are selling luxury homes at volumes similar to those of the first-quarter reports of 2005, a year in which existing-home sales volume peaked nationwide. According to the article, the regions that are still struggling share the strong characteristic of being located in suburban settings where more urban properties are experiencing great interest including multiple offers and bids.
In fact, the article tells the story of a couple living in San Francisco that failed to submit a winning bid for two homes during the first quarter of the year. It’s a sign that it’s not just investors that are entering the luxury home market. The couple in San Francisco had been saving for years and waiting to buy a luxury home when the time was right.
Many experts predict that the recent stall of the stock market could derail the positive momentum shift the luxury home market has experienced thus far this year. The article makes an interesting point that most consumers and their decisions in the luxury housing market are not driven by employment trends like other markets but by how well the stock market is performing and the Gulf oil spill has caused anxiety across all markets including luxury. We had a great first quarter and many believe this caused a sense of security among the wealthy. It’s a feeling that can quickly change if the market doesn’t see a strong recovery. If that were to happen, we would certainty see some very different numbers for the rest of the year.