Most people are aware that when the real estate market crashed, one of the hardest hit sectors was Luxury Real Estate. We are now seeing a resurgence in Luxury Real Estate across the US. We will briefly look at each vertical within the luxury market and some worries that US Government has with international buyers of luxury real estate.
Luxury Real Estate Developments
Luxury Real Estate Developments all over the country either went bankrupt or were selling at pennies on the dollar. Today, with the real estate market coming back, we see a resurgence in Luxury Real Estate. The Luxury Real Estate Market is seeing growth because of a couple of reasons:- Interest rates are starting to stabilize. Many savvy individuals that feel the real estate market is at the bottom and about to turn around are leveraging their funds.
- Very little yield in money market accounts. Money Market and savings accounts are providing an extremely small return. This is driving people with money to invest in a variety of higher yield investments. Real Estate, with its proven long term track record is a good place to have your money tied up.
- The Real Estate Market is ready to come back and with a vengeance. We are still seeing low supply and high demand only offset by the higher than normal interest rates. Days on Market is still historically very short.