The recession is still having an impact on America’s housing market.
However, luxury buyers have little reason to worry.
The crash in 2008 crushed real estate construction. Tradespeople left the jobsite, architecture offices folded, mortgage brokers went back to teaching, and national home builders laid off staff by the thousands.
Today the economy as a whole is much healthier. And real estate developers are back to work, but not in the same way they were before.
Many real estate developers are moving into luxury property construction to avoid becoming victim to another economic crisis.
In short, luxury home buyers are not as easily affected by the ups and downs of economy. They can handle financial storms for longer periods of time and thus have the means to buy new homes.
luxury buyers have little reason to worry.
Nationwide mortgage lenders and Fed officials are in backrooms hashing out plans to help more first-time home buyers afford down payments and mortgages.
Out in the market it’s a different story. Luxury homes are trading hands in droves, offering capable home buyers an array of living options.
Industry statistics are showing that many millennials, a slow-to-buy demographic considered critical to the housing market, are actually turning toward luxury-level homes, which might explain why so many real estate agents believe they’re not active in the market.
In a Bloomberg.com article, it was reported that Toll Brothers, Inc., “…the largest U.S. luxury-home builder, said that 23 percent of its sales this year were to customers with at least one buyer age 35 or younger. That was a surprise, given that the company’s average contract price in the three months through July was $837,300.”
The idea of a starter home has completely bypassed this generation, and Toll Brothers has noticed. It’s introducing “entry-level” housing lines and marketing them directly to younger buyers.
Established, older home buyers looking into the Las Vegas luxury market for an investment luxury property should be prepared to face more competition than in years past.
Las Vegas offers luxury buyers an array of living options, from quiet mountain enclaves to the country-club lifestyle. The options are many.
And apparently, it looks like the buyers might be, too.