Interest rates are down! Will this help the Luxury Market?
For the first time in what seems like a long time, interest rates are…LOW! After a relatively slow 2018, home buyers and refinancing homeowners are back in the market. Not in recent memory has there been a better time to shop for a mortgage rate, which means one thing: it’s time to buy! Now, When it comes to the federal government however, spring/summer of 2019 could be very favorable for interest rates and real estate in general, but like all good things, there’s usually an end.
With rates hitting a 14 month low, buyers of all walks of life are in the market in full effect. Even more so in the $1.5M – $3M range, lower interest rates is hugely important to buyers. Anything hovering right around 4% is basically free money to the savvy luxury buyer.
According to an article posted on themortgagereports.com, nearly 40% of high net worth individuals are looking to buy a home in the next three years. Though a large number of these buyers consider the move a “financial investment,” more cite improving their quality of life as the No. 1 reason to purchase real estate. So what does this have to do with low interest rates? Well, everything. When it comes to purchasing a home over $1M the difference in 3.9% and 4.5% is drastic and largely affects financial decision making.
We are working with buyers in Alpine, unfortunately they haven’t found the home that fits them best. If you are interested in selling, reach out to Beyder and Company Realty, we would love to find a match for your home!
By Igor Beyder, Broker of Record | Beyder and Company Realty