Luxury real estate
prices have drastically dropped just in this year alone. It seems that 2012 has
been labeled by realtors as "The Year of Capitulation". Luxury homes
listed at $1 million dropped nearly 20%. The average sale price of luxury real
estate property is just over $2 million, from a much bigger price of $2.5
million only during last year.
These lowering
prices are in stark contrast to today's rapidly increasing housing market. In
fact, it is only within the past couple of years that price started to rise
back again after the recent US economic depression.
The frequent
price-chopping inspired buyers from different walks of life to head over to the
US just in order to get their hands on some luxury real estate property.
Moreover, the percentage of buyers for luxury home prices priced at least $1
million has increased to 18% this year. According to statistical studies, this
is one of the strongest sales increases since 2008.
People who are truly
serious about selling are actually giving it a go. This year seems like the
perfect year to make those sales.
Experts believe
that there are a few factors that seem to responsible for these price drops.
The high end portion of the luxury real estate industry did not drop as much as
the other parts of the market since there was only a small number of sellers
who were distressed. This means that not so many people actually felt compelled
to sell.
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