It looks as if the housing market is repeating history. Turns out that like the stock market, real estate is relative and everything is cyclical, just like every other type of economics. Prices and sales go up, and they go down. And then they do it all over again.
Although it’s a volatile market right now, home sales on expensive digs are going up slightly–contrary to conventional wisdom. “Conventional wisdom says that the housing market is still soft and that buyers are hammering sellers for deep discounts and other concessions” says Steve Smith from The Daily Pilot.
But that’s not how the market is behaving right now. According to an analysis from the Boston Herald newspaper, last year in Massachusetts, million-dollar-plus homes rose in sales by 28%. Similar-priced homes in a ritzy area of Tampa Bay, Florida went up 22%.
According to Smith, “the sales increases in both areas are attributed to reduced asking prices, pent-up demand and, most importantly, a realization by the people with the means to buy these luxury homes that the sky has not fallen, that the economy is stabilizing and that their future is more secure.
“Here in Orange County, sales for homes priced at more than $1 million in 2010 were up 25.7% over 2009, according to Dataquick Information Systems. Orange County was not alone in such increases. All but one of the surrounding counties in Southern California experienced double-digit increases in million-dollar home sales, the lone exception being San Bernardino county, which showed a 10.6% drop, according to Dataquick. Statewide, Dataquick numbers show an increase of 21% for expensive homes, rivaling that of Massachusetts.
“Right now, the hottest part of Orange County is along the beach, though that should not surprise anyone as beach zip codes have usually fared better than inland properties….For January 2011, Orange County’s beach cities home sales increased 18% over a year ago, though the median price dropped 6.8% in the same period. For sellers of these homes, a 6.8% discount is usually something they can live with” (Steve Smith, The Daily Pilot).
All-in-all, sales in Orange County are up 3% from over a year ago, with the median selling price down a mere 2%. This figures indicate positive trends.
Read the article is by Steve Smith from The Daily Pilot: City Life: Sky hasn’t fallen on home sales.
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