Is This The Perfect Moment To Buy A Luxury Home?
Friends and Clients —
Luxury properties may never be this cheap again. Let me explain.
Right now, luxury homes, defined as those in the top 5% of the market, are not selling well.
In fact, over the past year, prices for luxury homes have decreased by 1.6%. Conversely, the overall real estate market, though slowing, saw values grow by more than 6% over the last year.
What's more, overall sales of luxury homes are down by 16%, while inventory is up by 14%.
There are several possible explanations for this.
The stock market has been volatile, and this is more likely to affect buyers at the top of the market.
The new limits to state and local tax deductions that came into effect at the start of this year are also going to impact the affordability of luxury homes.
Finally, the long period of high price growth we just experienced may have simply made many luxury homes too expensive.
Whatever the true reason for the drop in luxury sales may be, I believe one thing is true:
Now is the moment to act if you've been thinking about buying a luxury home.
This might sound surprising in light of what I’ve just shared, so let me offer two reasons why I think this.
First, the current price slide might not last long. A report by the National Association of Realtors shows that pending sales rose in March. This might mean that prices will soon increase as well.
Second, mortgage rates have temporarily dipped. After a year-long climb, mortgages rates dropped back to near-historic lows again over the past few months.
This situation is unlikely to continue for long. In other words, home prices and mortgage rates are likely to increase in the short- to mid-term.
Once this happens, luxury homes will become even more expensive and exclusive. And that's why I think now might be a perfect moment to buy a luxury home.
In case you're thinking about doing so, you can get started by taking a look at this complete listing of available Austin homes. It includes some beautiful and surprisingly affordable luxury homes that have recently come on the market:
If you are looking to sell your present home in addition to buying a new home, then you can get an idea of what your home is worth with this home value calculator:
And if you have any questions about the Austin real estate market and whether it's a good time to buy or sell in your particular situation, give me a call at 512-829-8000. I'm here to help.
Have a great day,
Looking to buy a home? Looking to sell a home?