September 23, 2009
Today I saw an internet advertisement with an interest rate at just 4.25% Wow, I didn’t think we’d see rates this low again after they briefly touched this range in 2004. These low rates are adding to the present home affordability and are helping to boost the real estate market and end this multi-year downturn. Even in the jumbo loan market, advertised rates have been much more attractive recently. Combine low rates with low prices and you have what may be the real estate opportunity of our generation. Savvy buyers are recognizing this and sales are picking up.
During most of 2009 our luxury home purchases were nearly all to cash buyers. Recently, several luxury home purchases have been made with 70% and even 75% financing. Thankfully these are all to quality buyers with well documented income, assets and credit. For example, I sold a custom estate home for $4,000,000 in which the buyer obtained a 70% loan and closed the sale in just 20 calendar days. This is record time considering two appraisals were required as well as intense loan underwriting. In addition, I have a luxury home in escrow in Redhawk at The Ridges in Las Vegas where the buyer is obtaining and has been approved for a 75% loan. Both appraisals actually came in above the sales price, great news for the buyer!
As the luxury real estate market continues to evolve I am hopeful that we will be able to look back to the fall of 2009 as the bottom of this real estate cycle.
Kenneth Lowman is the Broker/Owner of Luxury Homes of Las Vegas and has specialized in the Las Vegas luxury real estate market for 15 years and is considered one of the experts in the marketplace. He employs a staff of four to assist him in the marketing and sales of luxury homes in and around Las Vegas. He can be reached at 702-216-4663 or firstname.lastname@example.org or on his website at www.luxuryhomesoflasvegas.com.