More Folks Back In Large Home Market [AUDIO]
Consumer confidence is on the rise and so is the desire for luxury homes.
In fact, sales of properties between $750,000 and $1 million are up 38.7 percent from a year ago, while $1 million plus property sales are up 25.7 percent. That's according to the National Association of Realtors.
"It seems to be that consumer confidence is definitely starting to increase and the higher net worth individuals who are usually more cautious are beginning to pay attention to the market. They're reading the news and seeing that confidence is going up across the board," said Amber Noble Garland, Licensed Real Estate Agent with Weichert Realtors and certified distress property expert. "I think many of them are taking their own advice and advice from their financial advisors that now is the time to buy and investing in a more expensive home may be a good investment now."
Real estate is very cyclical and once this cycle is over, those homes will appreciate.
"They may not appreciate to the extent that they did during the real estate boom in 2007 and 2008, but they will appreciate and become good investments down the line," Noble Garland explained. "Getting a home that may have been out of reach or overpriced a few years ago may be worth it at this point."
The luxury home revival is also being fueled by the return of the jumbo mortgage to the market. Those are loans that are usually over $417,000 and are too big to qualify for purchase from federal agencies like Fannie Mae and Freddie Mac.
Will the sale of more luxurious homes continue this year?
"I think it will continue," Amber Garland said. "Many folks are still on the fence and are more cautious, but I think it will catch fire and become a domino effect. People who are in the income bracket who can afford these types of homes look for indicators from the Warren Buffetts and other financial gurus who speak about the housing market on a national scope."
"I think once they hear that home sales are beginning to increase on the higher end homes, it's going to pick up across the board, not only in New Jersey, but across the country."