Early last week NAR released the national numbers for July sales. Overall sales saw a large drop 27% from June and 25% year-over-year from July 2009.
As you know by now, the national media jumped on this and pundits and talking heads have been yapping about the dismal housing market and the risks it may or may not pose to the broader economy ever since. But, hidden in that same data was a good news story about the luxury market that national media seems to have completely missed.
While the pundits debate whether the sharp drop in overall sales was a meaningful indicator of market activity or just a product of the expiration of the home-buyer tax credit and artificially time-shifted demand, they all seem to have missed the fact that while overall sales were sharply down, sales in the $1M+ price segment were UP in every region across the country and more than 6% nationally:
It is likely that the 0.7% increase in the national median sale price for July was largely function of this increase sales at the upper end as opposed to growing price strength in the lower-priced segments of the market.
Bottom line: The luxury segment is outperforming the market overall, and this is a good news story that needs to be told! We have seen an increase in inquiries in the luxury price ranges of both Austin, ranch properly and Texas coastal property. Current buyers have faith in the overall integrity of the market and its future prospects. Many of our clients are shifting positions out of the stock market or other liquid holdings to park in real estate for sound investment opportunity and as a hedge against uncertainty and inflation. Subsequently, the majority of the clients we have been working with are paying cash for their home/ranch investment. As the stock market continues to be volatile and economic uncertainly is prevalent we anticipate continued activity in the luxury market.
Thanks,
Marcus P. Cox
Co-Owner Avalar Texas
Realtor®, ABR, GREEN, GRI, TRLP
Austin Board of Realtors Board of Directors 2010-2012
Co-Owner Avalar Texas
Realtor®, ABR, GREEN, GRI, TRLP
Austin Board of Realtors Board of Directors 2010-2012
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