Why are The Wealthy Buying Homes?

After four years of decline, one-million dollar+ homes sales rose 18.6% in 2010.  In the same time period, home sales below one-million fell 2.8% nationwide.  Amazingly, homes sales over five million increased significantly. The main reason is due to the historically low interest rates on loan amounts as high as $686,000 (SLO), which were previously considered the higher rate, non-conforming, “Jumbo Loans” over $417,000.  In 2009 buyers of high-end homes paid 1.8% points for a “Jumbo Loan.”  In 2010 the points spread shrunk to 0.6% points. Finally, these extremely low interest rates can be fixed for 30 years.

 

If you have any questions feel free to call me at 805-471-0828 or e-mail David@DNorwood.com – You can see all of my newsletters and Blogs at http://dnorwood.com

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About David Norwood - Central Coast Real Estate

ABOUT DAVID NORWOOD Real Estate Broker DRE# 01260196 - 805-270-5860 David@Dnorwood.com http://dnorwood.com David Norwood owned a marketing, design, and photography studio in Los Angeles for 25 years, from 1976 to 1999. He also worked as a Licensed Real Estate Appraiser from 1994 to 1999. After moving to the Central Coast in 1999, he worked as a Realtor/Associate, and shortly afterwards earned a Real Estate Brokers License. Now he has his own brokerage company, David Norwood Central Coast Real Estate. Licensed Real Estate Broker #01260196 Licensed Real Estate Appraiser exp. Master of Science Degree, Cal Poly BA Art / Marketing, Photography and Design Areas Served- All of the Central Coast including, but not limited to: Arroyo Grande, San Luis Obispo, Oceano, Grover Beach, Nipomo, Morro Bay, Cambria, Santa Maria, Cayucos, Los Osos, Santa Margarita, Atascadero, Templeton, Paso Robles, Avila Beach, Pismo Beach and Shell Beach;
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One Response to Why are The Wealthy Buying Homes?

  1. I tend to think real property purchases are being driven by perpetually loose monetary policies; lots of USD floating around the world these days. With every expansion of the Fed’s balance sheet the dollar loses purchasing power. Those with excess dollar holdings, particularly overseas governments, business owners, and investors, have been increasingly swapping paper currency for real assets: mines, precious metals, real estate, and even businesses.

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