Interest Rates Buoy Upscale Homes - Is This A Supply Problem In The Coming Years?http://manausa.com/upscale-homes-in-tallahassee-march-2014/
More so than any other graph in our collection, the image of the market for upscale homes in Tallahassee provides a clear picture of the perilous tie between home sales and low mortgage interest rates.
Our graph tracks all Leon County, Florida homes priced over $400,000 since the beginning of 1991, and it is clear that we went from sales in the teens to more than 500 in a single year during the height of the housing market bubble.
To put that into perspective, sales of these high end homes rose 6517% from 1991 to 2005, and we now have an inventory of expensive homes that will require future buyers regardless of future mortgage interest rates. And therein lies a problem.The Problem
Again, for more perspective, home sales in Tallahassee from 1991 to 2005 grew by 112%, meaning we saw them better than double. Yet upscale homes did not multiple by 2 like the rest of the market, they multiplied by 66! Are there really 66 new high end families living in Tallahassee today for every one that lived here in 1991?
Read more: http://manausa.com/upscale-homes-in-tallahassee-march-2014/ #realestate #tallahassee #upscalehomes #luxuryhomes #sellmyhouse