While for most Investors the homes that are most readily purchased as rentals and first homes are the most plentiful and the easiest to sell quickly, there is a resurgence in the luxury home market that may present an opportunity for Investors in certain markets.
The National Association of Realtors reports that the sale of homes valued at $1 million and higher increased 38% in February over the same period the year before. The reasons are low mortgage rates, loosened credit markets and more cash buyers ready to bet that these homes will increase in value in the future.
A 30 year fixed jumbo mortgage is currently at 5.58% for a luxury home loan, while a year ago it was nearly 7%. Because consumer confidence is returning in this high end market, more lenders are offering mortgage products to meet the demand. There are also many cash buyers in the high end market, especially in attractive retirement and second home markets.
Arlington, VA 22207