How is it going so far in 2009? Will luxury homes get a “bailout”? Most likely, not. What’s a Seller to do? If you don’t have to sell your multimillion dollar home in the next year, then wait. If you are on the market and need to move within a year then sharpen your pencil and get your price to the market. Remember, last month I said there were 114 homes on the market over 1.5 million dollars and I am forecasting 17 to 27 of those homes will sell in the next twelve months. So far this year one luxury home has sold and the inventory has dropped to 99. That is good, steady news!
Activity has definitely picked up as evidenced by increased showing appointments. The Buyers are sending a clear message that if the home is a “deal”, they will step up. The lending environment for jumbo loans is very tight and you actually have to qualify for the loan like you did in the good old days. There are some very good loans but exercise caution and choose a reputable lender who can deliver what they promise. If the interest rate and loan package is too good to be true … Some analysts are predicting increasing interest rates in the next six months so take advantage of these historic low rates and jump in to the market!