What’s going on with the luxury market?
Data courtesy of Lon Welsh, Your Castle Real Estate
Between 1/1/2008 and 6/30/2010:
– Sales were up in 2Q 2010 vs. 2Q 2009 (+13%).
– The number of REO (bank owned foreclosures) sales peaked in 1Q 2009, and has declined since then.
– The number of S/S (short sales) has been climbing steadily since their debut in 3Q 2008.
– For the first time, there were more luxury home S/S than REO sales in 2Q 2010.
This tells me that banks and sellers are both trying to avoid costly foreclosures and work out more short sales. The anticipated "crash" of the high end doesn't appear to be happening as we thought it might last winter. Prices are certainly down for the "distressed" properties, but the overall luxury market appears fairly solid.