2017 is the Year of Luxury Homebuyers, Here’s Why:
The dollar is strong, my friends, and that means good things for the luxury buyer. Mortgage applications are up to kick off the New Year and foreign buyers are beginning to show interest in local real estate markets. Both these factors signify an increasing demand for high-end real estate.
With the dollar getting stronger every day, American investors and investors in nations that have currencies tied to the dollar, are more confident. This bodes well for the housing market.
These wealthy investors recognize the benefit and long-term opportunities associated with owning luxury real estate.
Who’s Buying Luxury Real Estate?
Both domestic and foreign buyers are showing an interest in high-end real estate with Latinos leading the drive in places like Miami-Dade County, Fla. However, the location in which luxury real estate is purchased comes down to personal preferences.
Here in the Los Angeles market, our stable economy, lower property taxes and massive job growth over the past five years has led to increased sales and price appreciation. But luxury real estate isn’t just for the super wealthy. Homebuilders have taken note of the increased demand for luxury living and have found economical ways to incorporate that into new construction homes.
Move-up buyers, those who are selling their current home to buy a bigger home, demand the luxuries that were once reserved for the elite, such as luxurious master suites and grand entryways.
Know What Luxury Buyers Want
When it comes to buying and selling luxury real estate, it is important to know that buyers set the actual value of high-end properties. Real estate agents hoping to break into the luxury market need to make sure they fully understand the needs of their buyers and sellers.
Luxury buyers are savvy, have done their due diligence and are fierce negotiators. It is common to see million-dollar properties sell for tens, if not hundreds, of thousands less than the asking price.
2017 is all but guaranteed to move at a brisk pace. If you are not prepared to pounce when the iron is hot, you can miss a great deal.
For more information on buying luxury real estate or to be pre-approved for a jumbo mortgage, call us today at (888) 892-4070.