2016 hasn’t been a very exciting year for luxury real estate business as it has been fraught with political uncertainty and oversupply. The New Year too does not ring in good news and companies have to be ready for a slow yet steady year ahead. Experts are of the opinion that investors need to shun too much positivity and not expect great home trends.
High-end luxury real estate markets in cities like Miami, Los Angeles, San Francisco and New York are witnessing over-development in the high-end bracket, which is resulting in price concessions. The US citizens with higher Dollar income have a greater buying power all around the world and they are able to spend more than their counterparts from other companies. Affluent Americans are on a buying spree so that’s kind of good news for companies who depend lesser on foreigners for selling their homes.
In this article, we are going to take a find out how 2017’s luxury real estate market is going to pan out in some of the top cities in the US.
The presidential election results have come as a breath of fresh air for the luxury property market of New York. The final voting results have restored some sort of sanity and certainty and the year end witnessed contracts of more than $4 million dollar being awarded. Post election, home buying or selling activity in the luxury real estate segment hasn’t slowed down. November’s final week registered a total dollar contract of $371.6 million and all were in the high-end segment. The feel-good factor will be naturally carried forward to 2017 and builders can expect the same buying spree in the first few months as well.
Miami doesn’t paint a very impressive picture because builders and developers have either cancelled or suspended several projects that were supposed to take off late last year or early 2017. The high-end condominiums have remained unsold, which is a huge pressure on the companies. There has been an oversaturation in the condos and housing market in the $15 million price bracket.
San Francisco had witnessed quite a good response last year and saved itself from being part of a devastating crash. However, it is all set to join cities like New York that are suffering from the problem of oversupply of apartments in the luxury segment. The high volume of condo construction has led to a glut in this city as well – there are more sellers in the luxury real estate market than takers.