Sales of high end homes in Palm Spring and nationwide are making a big comeback after two years of double digit declines.
“We’re seeing a revival in the high-end housing market,” said Lawrence Yun, chief economist at the National Association of Realtors (NAR), who was quoted in the report featured on CNBC News. “It was so depressed, particularly last year, but it’s really improved. There’s much greater sales activity on upper end homes now.”
High-end homes are one of the few bright spots in the nationwide housing market, according to figures from the NAR.
In February this year, sales for homes priced at $1 million or more increased 38 percent nationwide from a year ago, according to the NAR. The Northeast is up 49 percent alone, while the West is up nearly 35 percent.
Lower interest rates, bank lending and consumer confidence are combining to fuel the comeback, according to the report.
“Rates are down for jumbo loans,” said David Adamo, CEO of Luxury Mortgage, a mortgage banking firm based in Stamford, Connecticut, who was quoted in the CNBC report. “Banks are seeing benefits in making these types of loans and are doing more re-financing now. I also think more people feel confident in the economy at the higher incomes.”
A 30 year fixed is currently at 5.58 percent for a million dollar loan, while last year at this time it was almost 7 percent, according to the report
Interested or buying or selling property in Palm Springs or the Coachella Valley area? Contact Patrick-Stewart Properties today.
