Sunday, June 28, 2009

Luxury Homes offer great value

While overall home sales suffered a major slow down the past two years, the luxury home market took a greater hit than the lower priced starter homes. There are several reasons for this, starting with the fact that the number of buyers who can afford higher-end homes is smaller to begin with. Secondly, financing of luxury homes typically requires borrowers to purchase “Jumbo” loans. Interest rates for these loans are significantly higher than loans for starter homes. And since the current government tax incentives only apply to first-time home buyers, there is not as much financial incentive for purchasers of the more expensive homes.

What does this mean for you? It may signal a unique opportunity to purchase a view or luxury home at a “bargain” price. Homes that would have commanded $1,000,000 or more two years ago are now going for $850,000 (on average). Obviously, that’s still a lot of money, but if you have a good job and good credit and ever intend to move up to a more expensive home, this may be the best time to do it.

Here is just one example of a home with a million-dollar view, currently listed for $825,000. MLS# 29036564. 5702 SW Admiral Way, 98116.
Remodeled 1929 Tudor-style, 4 bedrooms, 2.75 baths, decks on all three levels with 180 degree unobstructable views of the Sound & Mountains.

Want to see it for yourself? Call me for a private showing, 206-708-9800.

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