According to CNBC – The Highest-End Real Estate has been adversely affected by the economy.
In 2008, with falling prices, sluggish sales and currency fluctuations, the credit crunch and global financial crisis have hurt real estate in places that have traditionally been the most expensive markets in the world.
On March 23, Knight Frank released the Wealth Report 2009, a survey of high-end, prime real estate around the world. The findings show big price fluctuations around the world in the 2008 calendar year, and even more dramatic swings from Q3 to Q4. The firm defines prime real estate as: “The most expensive 1% of property in each location. Commonly – but not always – this will relate to the US $1m+ segment – and often will comprise an international client base.”
This past Spring sales in the million dollar category are at a standstill and sluggish would be a generous term for sales in this market. Some economists are calling for a stimulus package for all buyers and not just the $8,000 first-time homebuyer credit. I’m in agreement that we need to jumpstart the sales of homes across our nation to help restore consumer confidence and increase demand!