There is a definite shift in the Real Estate world at the moment. And one area which has seen these shift is in the million dollar plus market. After four straight years of declines, sales of luxry million-dollar homes and condos rose last year in all 20 major metro areas, according to DataQuick Information Systems. It’s a fact that when Wall Street goes up, rich people buy homes – And Wall Street has gone up! : Stock values have nearly doubled from their March 2009 lows.
The value of these luxury homes have fallen in recently years plus getting a mortgage in these luxury homes is less expensive. In 2009 buyers of high-end homes paid 1.8 percentage points more in interest than the average buyer. But in 2010, that spread had shrunk to just 0.6 points more.
That reduction would save about $780 a month on a million-dollar mortgage.