So the real estate news is starting to show signs of life. Headlines across the country are touting great news such as; the bottom is here, that foreclosures are stabilizing in key areas and signs that the end of the recession is near.
Alan Pope & Associates are reporting that here locally over 22% of the homes on the market are being absorbed by the market and Quadrant Homes is planning to step up construction for the first time since the real estate downturn.
So buyers in the market are finding, it's like picking through the last bin of the clearance bin, the really good deals in the lower price range (under $350,000 in South King County) and the new home options are fewer and further between.
So are there any deals left? Yes, the luxury home market is where the real deals are.
Now that we know that flipping properties should be left to those that can afford the risk and a home should be bought for what works for yourself and/or your family, it is my opinion that there has never been a better time to buy a luxury home. Why? Because in real estate it's all about percentages.
Let's look at a luxury home development, The Reserve at Newcastle. This neighborhood saw its first home built in 2004. If we look at the sales in the Reserve for the first 6 months of 2007, which was arguable, the peak of the market, we see a median home price of $1,862,995 versus a medium home price of $1,252,500 in the first 6 months of 2009, that's a savings of 33% or $610,495.
One of the homes that I am selling in the Reserve was purchased in 2005 for over $1,415,000 and upgrades well over $200,000 for a total purchase price in excess of $1,615,000. Today it's on the market at $1,350,000, over a quarter million dollars in savings.
And an even stronger argument for today's luxury home buyer is that the inventory today will be unique in what to expect from home builders in the very near and distant future. It is doubtful a builder will expose themselves to the luxury market without a non-refundable cash deposit before construction even begins.
The features that made the homes built between 2003 and 2008 will become a moment in history unlikely to be recreated on a grand scale and certainly luxury neighborhoods will be isolated to this moment in time. From beautifully landscaped yards, to high end millwork and scrollwork, to superb architecture and design, these features will be replaced with dense housing and energy conscience elements.
So if you are looking for a luxury home, this is still your time. The selection is vast, the prices are unbelievable, and the mortgage rates can be very attractive.
If you would like to know more about any luxury home or neigborhood, just give me a call at 425-432-9430 or visit my website.
Thanks,
Jana
