24 Aug Considering buying a luxury home? This is a great time!
If your current house no longer fits your needs and you are planning on upgrading to a luxury home, now is a great time to do so! Recently, the Institute for Luxury Home Marketing released its Luxury Market Report which showed that in today’s premium home market, buyers are have an advantage. This is also the case in the Twin Cities area.
The inventory of homes for sale in the luxury market far exceeds the number of people searching to purchase these properties in Minnesota and the Twin Cities market. This means that homes are often staying on the market longer or can be purchased at a discount.
If you currently have a starter or trade-up home to sell you will find a large buyer pool of competing buyers, and often we find ourselves in a multiple offer situation and receive above asking price offers.
The excellent sales price of your starter or trade-up house will help you come up with a larger down payment for your new luxury home. Even a 5% down payment on a million-dollar home is $50,000. In addition at today’s interest rates a luxury home has rarely been this affordable. The federal reserve has said higher rates are coming in the short term and throughout next year and with Jumbo rates the same interest rate as traditional conventional financing that is another reason to buy now.
But not all who are buying luxury properties have a home to sell first or can afford to buy without first selling their home.
A recent Bloomberg article gave some insight into what many millennial’s and other buyer groups are choosing to do:
“A new generation of affluent home buyers powered by a surge in inherited wealth is driving the luxury-home market, demanding larger spaces and fancier finishes, according to a report heralding ‘the rise of the new aristocracy.’”
The best time to sell anything is when demand is high, and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home, now’s the time to list your house for sale and buy your luxury dream home.