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Millionaire Babies?
As reported in the 2007 World Wealth Report, there are more millionaires in the world than at any other time before. Amazingly, the report states that from 2005 to 2006, the number of new millionaires in North America alone grew to 3.2 million - a huge increase of 9.2%. But why...
Looking at that, it seems rather hard to believe, but just look at the luxury home sales throughout the United States - and here in the Austin Texas real estate market specifically. The Austin home sales statistics supports the data for homes at $750,000 and up. Regardless of the belly-aching and declining housing woes in markets outside of Texas, Austin's high end and $1 million plus housing market is actually doing okay. So why are Austin luxury homes doing so well?
My market research indicates that this is due to two major factors.
First, the Austin and Central Texas areas have growing and expanding employment - and higher paying jobs. Austin's reputation is now about high tech and we're considered the Silicon Valley of Texas.
Second of all, Texas missed-out on the big real estate boom that most other US markets had from 1995 to 2004. The Austin real estate market was good, but some places like Florida, Denver, Las Vegas, Phoenix, Salt Lake and California doubled or tripled in home appreciation and values. So now, Austin is considered value priced and a tremendous buy for most people relocating here now. For example, the comparable homes in California are 300% higher - so you get 3 times the house per square foot in Austin - and our homes are much newer too. See more city ionformation at our home page.
The only thing stalling most Austin Texas real estate sales, above $750,000, is that Jumbo Loan requirements have tightened dramatically. Most buyers aren't real thrilled having to liquidate 401(k)'s and investment accounts to pony-up a 10-20% down payment, and because most stated-income and no-doc loans got a lot tougher to get!
Don't expect Austin's $750,000+ luxury real estate market to suffer anytime soon. So far, it's been resilient as the rest of the US melts down. Just imagine what home values in Austin will jump to, when the US housing market bounces back!
Luxury sales volume in the one million plus dollar range has dropped just slightly compared to last year's numbers, but not by much.
Let me know how I can help you...
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