CNBC.com® reported yesterday “high-end housing sales are making a surprise comeback.”
The National Association of Realtors (NAR) also reported that in February of this year, homes priced at $1 million or more in the western U.S. were up by 35% over the same period of last year.
Here in the desert, sales of luxury homes in the first quarter on 2010 were up 49% over the same period of ’09 so once again we seem to be out pacing the most of the nation.
What’s seems to be creating the high end boom is a combination of lower interest rates, bank lending and consumer confidence. Bargain prices don’t hurt either! Rates are down for jumbo loans as banks are now seeing benefits in making jumbo loans.
Interest Rates on Jumbo Loans Lower
QuickenLoans® reports that “Banks are doing jumbo loans now a lower interest rates because they see it as a secure way to make a profit these days.” With interest rates for bigger loans falling, consumer confidence seems to be rising for those in the higher income brackets. It disappeared as the economy slumped–at least when it came to luxury homes. Locally for us we continue to experience about 80% cash buyers in the luxury home segment.
Other mortgage lenders are reporting that people seem to be more comfortable in thinking the luxury home market is not collapsing. Home values are stabilizing and it’s been a matter of following the leader. One person sees others buy and they join in. That’s been happening nationwide and its definitely happening here in the desert.