Are the Wealthy Buying Real Estate?
John Paulson, billionaire investor.
Donald Trump, no introduction necessary.
Barbara Corcoran, real estate TV personality.
A pretty impressive list!
So are the wealthy buying real estate?
The real question: Is anyone listening to them? The answer: The wealthiest people in the country. According to the most recent Existing Sales Report from the National Association of Realtors, at a time when sales of all homes have decreased 2.8% compared to last year, homes over $1million dollars are selling at a rate 3.9% higher.
Why are the wealthy buying real estate right now?
- Money is cheap. The 5% interest rate will not be available forever.
- The ability to lock in that interest rate for 30 years may soon disappear.
- Getting a mortgage may get much more expensive soon.
- They want to buy low and sell high. The price of real estate is low.
We know many will disagree with us about now being the time to buy. But if the wealthiest people in the country are buying real estate, shouldn’t we at least consider the possibility?