A report, commissioned by Sotheby’s International and Architectural Digest magazine, finds the rich are not being effected by the financial market meltdown. For the most part Luxury property, other types of high-end real estate and luxury homes are selling well.
So here we go, yet another study is out suggesting that the wealthy are collectively thumbing their noses at the oft-reported global property crisis. Well maybe.
“Despite media reports to the contrary, high end buyers are still confident about the market”, the study shows, according to the Sotheby’s press release. A whopping 79 percent of respondents believe the value of their house will remain constant or increase in the months ahead, the study found.
Also, 85 percent of the respondents still believe real estate is a good investment. In other words, many luxury buyers understand the industry’s fundamental cycles. In many markets around the world, agents report that luxury homes are holding their value, even though sales have slowed dramatically.
Considering the sponsors….it’s hardly surprising. But it’s worth noting that the results are similar to a report released a few months ago by American Express Publishing, which found that 75 percent of the “super rich” said they believe the current real estate market represents a “real opportunity” and 33 percent plan on buying a second home this year.
Who knows? But after the global financial market meltdown last week, the rich may be getting closer to being in the same boat the rest of us are in.
How is luxury property in Uruguay holding up? So far so good, but panics, and let there be no doubt this is a full fledged panic, is a new and worrisome wrinkle.
Stay Tuned!
Steve Bowman
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