Who's buying homes? The rich.....................
NEW YORK (CNNMoney) -- The rich are different from you and me: They're buying real estate.After four straight years of declines, sales of million-dollar homes and condos rose last year in all 20 major metro areas, according to DataQuick Information Systems. On average, these cities saw an 18.6% jump in high-end home sales.
San Jose, Calif., had the biggest market for million-dollar homes, with a 27.4% spike in sales last year; Phoenix saw the smallest increase at just 0.4%.
Meanwhile, sales outside of this price point actually fell 2.8%.
"It hasn't been a good six months for all people, but it was a good six months for rich people," said Glenn Kelman, CEO of Seattle-based real estate brokerage Redfin. "When Wall Street goes up, rich people buy homes."
As their confidence soared, the wealthy took advantage of bargains in expensive homes. An average seaside manor on Jupiter Island, Fla., that might have sold for $4 million in 2006 cost less than $3 million last year. The Brentwood bungalow in L.A. was $1.5 million instead of $2 million, and that Scarsdale colonial fell to $1.1 million after gong for $1.5 million four years ago.
I read this article and couldn't help but to think how true and rather said it actually is. Now is a great time for a young couple to jump into the market. They could do really well. But many such people have been impacted by the economy or a afraid of the market. Now is the time.
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It's very true. I'm 23, almost 24 and couldn't even imagine having the money to buy a property in any part of the country, let alone in America, or specifically New York - one day, i'll win the lottery and then relocate there lol.
ReplyDeleteFor now, i'll be looking for houses to rent in Runcorn, which is quite sad really.
But I wish people like Suzy Orman would stop telling people that the American dream is dead and to forget home ownership.
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I am confidant you will find what you're looking for here......Rent to own homes, also known as lease to own homes, normally do not require credit score checks and so there is no need to worry even if you have a bad credit history and poor credit scores.
ReplyDeleteIt is true that the rich get more property, but younger people need not to worry. The are plenty of home builders that are building quality homes are great prices that we can afford.
ReplyDeleteActually, at some point, I agree that rich people are the only one who could afford to buy a house, since they are the one who had enough money to spend for this. However, I have a feeling that even a wealthy person can buy a house, but of course with a good money management. And besides, today, there are some houses that you can buy in installment payment. So, anyone of us had the chance to own there dream houses. Right!...
ReplyDeleteI'm wondering what would be the trend of the rich people in buying real estate after two years. Are real estates will cost higher after two or three years? Or it will cost much lesser compared today? Just curious.
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