High End Homes Look Attractive
There are so many deals out there right now but the higher end homes have really come down in value. Now you could argue that they were never worth what they were back in the boom but regardless the prices are very attractive.
The luxury market is seeing a lot of price reductions. Here are some very interesting statistics. “Such homes only account for about 2% of the properties listed on the site, but represent 25% of the total price reductions by value. Overall, sellers listing homes for more than $2 million have dropped their asking prices by a total of $7 billion, with an average price reduction of 14%. The average for all properties tracked by Trulia is only 10%.”
Many people think it is hard to get financing on these properties because they fall into the Jumbo loan category which is above $417,000. That isn’t necessarily true. The only difference is that they require larger down payments and the rates are higher than market rates but are still very low compared to historical standards. The reason for the larger down payments is because these properties do not sell as fast so if they foreclose it takes the bank longer to sell the property.