 The price of luxury homes varies from market to market. In some, it could be $700,000 and others over $2 million.
In the San Diego luxury home market, we see luxury homes priced north of $2 million languishing on the market a little longer than ones priced below that number. On the other hand, that lofty number could be a bargain in the Silicon Valley and San Francisco’s Bay area.
So if your house no longer fits your needs and you are planning on buying a luxury home, now could be a perfect time to do so. Recently, the Institute for Luxury Home Marketing released its Luxury Market Report which showed that in today’s premium and luxury home market, buyers are in control.
And that may be one of the few real estate niches where buyers are in command.
The inventory of homes for sale in the luxury market far exceeds the number of people searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer–or can be found at a discount.
Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call their house their new home.
The sale of your starter or trade-up house will help you come up with a larger down payment for your new luxury home. Even a 5% down payment on a million-dollar home is $50,000.
But not all who are buying luxury homes have a property to sell first.
A recent Bloomberg article gave some insight into what many millennials are choosing to do:
“A new generation of affluent homebuyers powered by a surge in inherited wealth is driving the luxury-home market, demanding larger spaces and fancier finishes, according to a report heralding ‘the rise of the new aristocracy.’”
Bottom Line
The best time to sell anything is when demand is high, and supply is low. (Remember the old adage about buying fur coats in the summer?) If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home, now’s the time to list your house for sale and make your dreams come true.
If you are in the San Diego area and want to discuss your selling or buying options, give Roberta Murphy a call at 760-402-9101 or email roberta@sandiegopreviews.com And if you are out of the area, I can help find a luxury real estate agent who is intimately familiar with luxury homes in your desired market. |
