The Real Estate market has been falling for quite some time. Lower end homes of $300,000 and lower have dropped to the average cost of $195,000, and are the source of bid wars between investors and first time home buyers. However now, the higher end market is starting to lose their hold.
Unemployment has been a strain on the luxury homes. It is reported that 40 percent of a $156 million reduction is from homes worth $1 million or more. These luxury homes have dropped from an average of $271,000 and $334,000.
The luxury market is decreasing, but Sacramento Association of Realtors put out a report that stated only 2.9 percent of sales were priced over $500,000. The market is still small, but may grow in the future if the luxury market drops further. It will be a good opportunity for those who have the funds to purchase their dream luxury home.
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