It seems as though for the last couple of years the sale of multimillion dollar homes has been like a runaway bride. GONE. Even Houston, one of the strongest cities during the economic downturn, had somewhat of a stand still in sales of multimillion dollar homes. Things can change.
My expectation for the next couple of years will be a comeback market for these homes.
Although mainstream American is not looking at multimillion dollar listings, people in certain parts of the country are. Although there is plenty of inventory, I believe Houston will see an uptick in sales of these homes.
We have seen sales of homes that make up the luxury market—priced from $500K and up—consistently strong all year – and rose 23.2 percent in November. This tells me that if sales of these homes rose that high by 2010 year-end, then we will probably see a continuation of this through 2011. Also, since the luxury market (500k and up) has been relatively strong, I think there will be an overflow of sales into higher priced homes.
Over the last few years, people have been cautious with their money, expenses and investments. The stock market has finally made its way back above 11,000 points. Cash has played an important part to people’s lives, money-flow has a new meaning and putting cash back into real estate is becoming an attractive commodity again. Historically low rates and deflated prices are encouragements to want to buy real estate. Also, the public is beginning to understand new lending guidelines and a level of comfort enables people to relax when it comes to making big purchases in real estate.
This past year, I saw many large deals go through, even though the lending laws were undetermined, foreclosures were still rampant, and people were hesitant about their jobs. This year, I suspect there will be many more deals in the luxury market and even in the multimillion dollar luxury market.
There is definitely a sense of direction for real estate working in luxury markets at Beth Wolff Realtors. Every day seems to be a busy day here.
Michele Marano specializes in Luxury Real Estate.
If you would like to meet with Michele Marano about selling your luxury home, please schedule an appointment at Beth Wolff Realtors, 713-622-9339.