The biggest drivers behind the rebound in luxury home sales: Low mortgage rates, rising consumer confidence, cash buyers, and international buyers, according to real estate professionals and brokers who spoke at the recent National Association of Real Estate Editors conference.
However, with low mortgage rates, some luxury home buyers are financing their home purchases. For example, some buyers who traditionally would pay cash are instead securing 2.25 percent interest rates and 10-year loan terms.
Among the features that are luring luxury home buyers are outdoor kitchens boasting spacious patios and home spas. These buyers are also drawn to “properties with a story—say, a famous former owner or a renowned architect,” The Wall Street Journal reports.
With home prices gaining momentum in the luxury market, the U.S. will soon see a record-breaking $200 million listing. The record currently is believed to be a $190 million listing in Greenwich, Conn. However, many of the highest priced listings tend to be more for attention sake, and often end up selling for 50 percent or 60 percent of the original list price.