Buyers Are Looking to Buy in the Luxury Home Market
The pandemic has surprised everyone, but no one as much as the economists who predicted a gloom-and-doom reality for real estate in 2020. On the contrary, the housing market has experienced a robust surge and continues to drive the nation’s economic recovery!
Here’s a look at what several industry-leading experts have to say:
“Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures…Although exact contours of the economy recovery remain uncertain, we expect current equity gains, fueled by strong demand for available homes, will continue to support homeowners in the near term.” Frank Martell, President and CEO, CoreLogic
And from Zillow:
“Zillow’s predictions for seasonally adjusted home prices and pending sales are more optimistic than previous forecasts because sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand.”
Nowhere has this phenomenon been more evident than in the North Bay areas of San Francisco, Sonoma County, Alameda, Napa and others. Despite the pandemic, fires, and power outages, we have seen a voracious appetite for property in our area, especially for the luxury home market. Large, sprawling estates are making their comeback.
The residential buyer today is looking for more space, both inside and outside. Their aspirations for more room to roam are being dictated by the quarantine and by spending more time at home. This was not the case this time last year as reported in a recent edition of Luxury Market Report from ILHM:
“Exactly one year ago, we reported that demand for large properties, mega mansions, private estates, and luxury ranches had reduced significantly over the previous few years; especially from the younger generations of luxury property buyers.”
The steady increases in equity have enabled this move up to more luxurious property. Leveraging home equity makes it easier to afford the down payment on a luxury home. It is the belief of some economist that luxury real estate prices may continue to strengthen further into the final quarters of this year.
If you’re ready to gain some breathing room in a larger home, it’s a great time to get pre-qualified for a mortgage. If you find that, although you have sufficient funds for a down payment, you fall short of meeting the new, stricter Covid-19 regulations to qualify for a conventional mortgage, give Sun Pacific Mortgage a call at 707-523-2099. We have been serving just this category of buyer for over thirty years with many happy clients.