- Luxury Real Estate is on the move this year.
- New types of buyers and rules are revitalizing the luxury sector.
- Growth was predicted to shape the affluent luxury market back in 2016
Luxury real estate agents should be excited about 2017- they have several reasons to be optimistic about their area of expertise.
This year has and will continue to bring its share of exciting developments, innovative design, progressive trends and brand new technology to the high-end real estate market.
In upscale industry there is no time to relax. Here are 4 reasons why it should boom.
1. New mortgages
Financing will be easier for buyers when they want to finance their purchases in 2017.
Fannie Mae and Freddie Mac will provide backing for larger mortgages for the first time in more than 10 years.
2. The Foreign Buyer
International buyers are key as they still desire the coveted luxury property on US soil. They are broadening their horizons and are willing to spend.
Foreign purchasers continue to seek out luxury real estate in major American centers. Yet they are also showing interest in high-end homes in other metropolitan regions across the nation.
International buyers are going far beyond their own borders to find safe investments. Like any homebuyer, they look for affordable prices and the best return, including long-term growth opportunities.
Foreign purchasers crave the luxurious lifestyle and ultimate security that come with a high-end home in an affluent neighborhood.
This wealthy group is not expected to lose interest in U.S. luxury real estate anytime in the foreseeable future. Both Europe and the U.S. will continue to attract increasing amounts of foreign capital, especially from Asian buyers.
3. Historical Growth
As the year progresses, the high-luxury market should see more affordable prices.
Remember steady growth is good. This scenario does follow frequently behind times of high asking price and decreasing absorption numbers.
Despite the worry from the recent election things are returning to a more leisurely pace.
The post election period is a time of restoration for the campaign stress.
Toward the end of 2016, there was a spike in contracts for New York City real estate valued at more than $4 million. According to the weekly Olshan Luxury Market Report, the last week of November recorded a $371.6 million year-high for contracts in the Big Apple.
The Olshan Report for the first week of January showed 26 contracts of $4 million or higher were signed during that period in New York City.
This data makes January 2 through 8, 2017, the best first week of a new year in three years for ultra-luxury residential properties in New York City. In addition, more development is expected in the lower end of the luxury market.
In Miami, as expected, waterfront real estate enjoys consistent popularity, but non-beachside mansions are now also glimmering in the eye of the affluent/luxury buyer.