Lake Tahoe Real Estate. Luxury Home Sales Bounce Back in the First Quarter!

by Bonnie
Monday, July 26, 2010 4:32pm (PST)

Luxury home sales are bouncing back! After a devastating 2009, growing buyer confidence, improved financing conditions and more-realistic seller pricing, the luxury market seems to be making a comeback. Attractively priced homes in some of the nation's most coveted neighborhoods are selling, sometimes fast and sometimes with multiple offers, despite the housing downturn. Since last year, the nation experienced a  32% increase of sales of homes selling for $2 million to $5 million totaled 2,461 in the first quarter. Some could argue that this was to be expected. Many potential buyers in the fall 2008 were left in a state of financial panic, causing them to become too nervous to bid. However, the turnaround could unravel as the recent stock market tumbles. The rest of the housing market is driven largely by employment trends, whereas high-end buyers are much more sensitive to the changes in the stock market. This fact is, this is what  may have helped make them feel wealthier in the first quarter, but if the markets do not recover soon, it will definitely hurt the demand for luxury homes in the near future.  Post my comment