A recent data reveals that U.S home prices are suffering. However, this is not the case in Texas wherein luxury home sales continue to be a fast-growing trend.
CBS News reports that "if there's a place homeowners want to be these days, it's in solidly middle-class houses." Based on the latest Redfin Corp's real estate data, the high-end homes, which comprise 5% of the real estate market, "have hit a dead zone with pricing." It is noted that there was no price appreciation of luxury real estate properties in 2015. However, the remainder 95% has gained 4.9% price appreciation.
What could be the culprit of this problem? Report says this is an upshot of China's slowing economic growth plus the "the strength of the U.S. dollar." Thus, foreign buyers find it expensive to acquire properties in the U.S.
However, this is not only happening in the U.S. There are other countries that are also "getting hit by the trend, given that the average prices of luxury homes in 10 global cities are expected to rise at roughly half the rate as in 2015."Based on the Redfin data, luxury real estate properties "held steady at $1.07 million last year."
On a different note, the state of Texas seems to be exempted by this trend. According to Housing Wire, Texas' luxury home sales continue to be a strong-growing trend.
Report says that "the 2016 Texas Luxury Home Sales Report recently released by the Texas Association of Realtors" reveals that the "Luxury home sales continue to be one of the strongest sectors in the Texas housing market." In fact, the sales continue to rise.
The most popular trend of homebuyers is to acquire a property with smaller lot yet in "in more desirable locations and with higher-end amenities." But then there are also buyers who prefer to purchase older houses in prime locations that are normally priced for less than a million. Then, the new owner would demolish the old property and build a new house.
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