Luxury homes within reach for more buyers

With prices falling all over, there is a little bit of good news, if you choose to see it this way. The luxury home market is becoming more affordable to “regular” people. An article from Newsweek brought up this silver lining saying that buyers who were once price out of the market are now able to afford luxury homes.

Prices in the Caribbean have dropped by $500,000 and European retreats in Spain, Malta, and Portugal are down 30 percent, says Lucy Russell, managing director of Quintessentially Estates.
“The second-home market has suffered considerably,” says Marc Cohen, director of Ledbury Research, the London-based luxury consultancy.

He says active buyers have changed from the typical 65-year-old retiree who has sold his business or retired from a high-salaried job to a younger person who sees opportunity in declining markets.
“Those who need to sell will do so for substantially less than they would have six months ago,” says Charles Weston-Baker, managing director of Savills, U-K real estate services provider.
Source: Newsweek International, Ginanne Brownell (01/12/09)

This is what I’ve been trying to tell potential buyers for a while now. If prices are falling, that means that you can afford more, and that makes it a great time to buy! If your current home’s price is a little down, so is the house that you want to move up to, so you are winning out overall. Of course, the challenge comes when you have no equity left in your home and therefore no down payment for your next home.

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