Princeton Town Topics – Let’s Talk Real Estate – June 10, 2008
LUXURY HOME PRICES STILL RISING
While sales of new and existing homes remain sluggish, the market for luxury homes costing $5 million and above is still growing.
Analysts say its a matter of supply and demand. Multi-million dollar homes are usually situated in high demand areas with one of a kind views and access to sophisticated amenities. There are only so many of these properties available. While there are still an increasing number of high-priced homes on the market, there are even more affluent buyers looking for the right property. A growing number of those prospective buyers are wealthy foreign buyers from Asia and Europe looking to capitalize on the weakened U.S. dollar.
The very wealthy are pouring more money into residential real estate, said the founder of Institute for Luxury Home Marketing. While Europeans have always invested in American properties, new buyers are increasingly from Brazil, Russia, India and China. Luxury homes in the U.S. hold great appeal to buyers worldwide and make an excellent long-term investment.
