Luxury homes have seen a slight downturn in the market because the Millennial generation (now between 25 and 40) is hesitating to purchase them. But that's actually not a bad thing for those who are interested in the luxury home market. Read on to learn more about buying a luxury home.
Luxury Homes for Sale in a Buyer's Market
Since luxury homes are being purchased less frequently, they're also being sold at a fraction of the price. Most people don't purchase luxury homes for their resale value; they purchase luxury homes because they want a home that they love. If you've thought about buying a luxury home, now is probably the perfect time. Since there's a reduced demand for it, you can negotiate on under-valued homes, and you can purchase homes far under what they're actually worth. Combine this with spectacularly low-interest rates and a favorable lending market, and you have a lot of advantages.
Recapturing Value from Luxury Homes
But what if you're concerned that your investment in a luxury home will depreciate? Millennials aren't buying luxury homes because the generation has difficulties saving money, but that doesn't mean they will never be purchasing homes. It means that they're purchasing homes later in life. While it's a gamble, it's fully possible that the market will rebound later, as these people enter into the buying market. And since you're already purchasing a depreciated luxury home, the value of your property may not fall very far, if at all.
Finding the Right Luxury Homes
There are many different types of luxury homes to choose from. Waterfront property is always going to be valuable because there's a limited amount of truly waterfront property. Luxury homes that are modestly priced (not too high valued) will always have some market. A real estate agent can help you find the right luxury home for you and your family. Express your needs to your real estate agent. Are you going to be living in this home for the rest of your life? Or do you hope to flip the home in ten years?
As for now, while luxury homes are going down in value, they're still inherently worth a lot. The market is being artificially pulled down because the current generation is barely investing in homes, let alone luxury homes. As the market rebounds and consumers are able to save more, the real estate market as a whole is likely to rise again.