There are a number of factors which have come about over the last few months which will make a positive impact on the luxury housing market. Stock market gains coupled with rising real estate values have increased household net worth by over $3.6 trillion between the 4th quarter of 2016 and the end of the 1st quarter 2017. Many analyst see household net worth reaching the $100 trillion mark by year end.
Since January the DJIA has gained over 1200 points moving very close to 22,000. The gains have been driven by strong job growth and corporate earnings. The prospect for lower corporate taxes and lighter regulation has also been a factor.
Although interest rates have seen a modest increase, this has not played a big factor in housing demand. Interest rates remain relatively low and the home affordability index reflects a favorable market for buyers. More investors are entering the non-conforming arena which creates greater liquidity with more program options.
Increased net worth created by an improving economy results in a higher level of consumer confidence. This increase in consumer confidence along with low interest rates and a liquid mortgage market should lead to a greater demand in the luxury market. For additional information contact Dusty Hill at404-660-0504.