earlier this month CNN Money reported that McMansions are back and noted a rise in consumer spending on luxury items such as SUVs. In early May, TIME magazine stated: ” Wealthy Americans don’t really think that good times are here again for the economy. But they’re going on shopping sprees anyway…”. First statistics supports the fact that wealthier consumers are ready to spend. Closed sales in the $600,000 to $1,000,000 price range are up 92.3% for town homes/condos and 92.6% for single family residences.
Active inventory for town homes/condos is down 10.8% and for single family residences is down 15.3% from last June. We remain in a seller’s market with inventory below 5.5 months for single family residences and town homes/condos. The lack of inventory continues to frustrate potential home buyers seeking the American Dream of home ownership. Many potential buyers are losing out to wealthier cash buyers and investment organizations.
Median sales price for town homes/condos are up 11.2% and median sales price for single family residences is up 18.7% from last year June.
The number of short sales is down by over 30%, which may be partially attributed to the fact that fewer people are so far “under water” that they can’t see a way out. With prices increasing their home loans may soon be in balance with market value again.
The market is very active, a lot of the “good deals” are no longer, seller concessions are not freely offered any more, and buyers have to be patient yet decisive in their search.
Please, call a member of our dedicated brokerage to help you find your dream. We work hard for you and go above and beyond for our customers.
Your Global Lifestyle Team