Affordable house prices have inspired many wealthy Americans to purchase more expensive primary residences, according to a recent survey by the Luxury Institute and the Institute for Luxury Home Marketing.
The survey showed as many as one in four Americans earning at least $150,000 annually has bought property since 2008, and this trend should continue in the near-term. Within the next 12 months, 17 percent of respondents in this demographic said they plan to buy a house, and this figure rose to 23 percent among those younger than 50 years old.
For the period between 2008 and the present, the median purchase price of houses for this group of luxury homebuyers was $509,000. Sales for properties priced even higher have also been strong. Linda Moore-Moore, CEO of the Institute for Luxury Home Marketing, cited a recent National Association of Realtors' report that showed an 18 percent year-over-year increase between 2010 and 2011 for sales of homes priced $1 million or more.
Buyers interested in this luxury home market might be wise to move quickly to obtain optimal financing. The cap on loans eligible for Fannie Mae and Freddie Mac securitization is set to decrease in October, which could lead to higher downpayments and less favorable interest rates for big-money mortgages.
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