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Why Is Luxury Real Estate Flourishing Right Now?

by Marquette Turner Luxury Homes

in Variety

2017 is a wonderful year for luxury real estate and although there are still many months left, agents involved in this part of the industry are already satisfied with what happened. We are faced with numerous exciting developments, progressive trends, new technology and innovative design as with Tower 155, all leading towards good profits. Why is this happening? There are different reasons that can be presented but the following are those that have to be seen as the most important.

The Appearance Of New Mortgages

It is now easier than ever to finance buying luxury real estate. Large mortgage backing was seen in the US from Freddie Mac and Fannie Mae, which are mortgage companies that are government owner. This is actually the first time that happens in over ten years.

More Foreign Buyers

The international buyers are still interested in luxury properties in the US. After the presidential election it was believed that this may change but it did not. The foreign buyers are looking for luxurious properties mainly in the larger US centers. At the same time, interest is present for the higher end homes in various metropolitan areas.

Luxury real estate purchases are seen as being safe investments in various circumstances. Since we are looking at very good returns and affordable prices, it should be no surprise that the foreign buyers are more active than they were for the past few years. They are often investing in long term options and we should also highlight that luxurious lifestyle is something that many foreigners are craving right now.

Affordable Prices

2017 was a very good year for the ultra-luxury real estate market because of different reasons, including highly affordable prices. Steady and consistent growth is always seen as a very good sign for real estate. That is exactly what we have been seeing for quite some time now. Asking prices were high in 2016 so many realized that 2017 will offer affordable prices. The specialists were right and the decreasing absorption numbers were clearly pointing towards increase in luxury real estate appeal.

The Post-Election Period

The election period is one of uncertainty. This is why distractions and preoccupations stand out. After elections there is a time frame in which restoration happens. Uncertainty is inevitably replaced with brand new development.

At the end of 2016 we saw a clear spike in NYC real estate contracts with a value of over $4 million. This was inevitably connected with the link between president Trump and the city. Some people wanted to sell while others wanted to buy. This is something that continues throughout 2017. For instance, the first week of January highlighted the best possible week for NYC ultra-luxury real estate in the previous 3 years. At the same time, other cities are growing and offering more real estate in the luxury price range.

On the whole, 2017 is a great year for luxury real estate and it is expected that 2018 will be exactly the same. While regular real estate properties are not increasing in popularity, luxury properties are more wanted than

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