Luxury Homes Spike the End of 2012, Cause? Wilmington NC is Trending the Same.

 

 

Wilmington Luxury Homes Sales jumped as it did Nationaly. Why?

Sales of luxury homes spiked in the final months of 2012 as high-end homeowners rushed to take advantage of lower tax rates before January 1.

Many sellers wanted to cash in on their homes before a widely expected capital gains hike -- to 20% from 15% -- that was part of the fiscal cliff budget deal. High-income earners (singles with income of $200,000 or more and couples making more than $250,000) also wanted to close sales ahead of a 3.8% Medicare surtax on investment income that was already slated to go into effect this year as part of the Affordable Care Act.

Viewings Increase for Wrightsville Beach Homes

Wrightsville Beach Luxury

During economic times buying a beach home was put on the back burner for awhile. They were not seen as a must have.  In the last three months there has been an increase in viewings; and more importantly solds in the Wrightsville Beach area.  These Luxury homes are at there lowest in nine years.  Buyers in the luxury market have realized now is the time to get off of the fence and purchase these magnificent homes. 

In the last 3 months there have been 120 homes sold in the Wrightsville Beach area.  With the most expensive one being sold at $3.2 million. Beach property continues to be a great investment in the Wilmington and Wrightsville Beach area!

Luxury Real Estate Market "Capitulation"

Why are they calling this the"Year of Capitulation" in the Luxury Home market?
Even the rich aren’t immune to the pressures of the housing market.
Prices for homes priced at $1 million or more have fallen a 20 percent this year, according to RealtyTrac. The average sale price for top-tier real estate has fallen to just over $2 million, from $2.5 million in 2011.
Those prices cuts stand in stark contrast to the broader housing market, which is seeing early signs of price stability and even price increases for the first time in years.
All that price-chopping at the top, however, has sparked a wave of sales as buyers scoop up deals and sellers accept the new reality of lower prices.
The number of transactions for homes priced at $1 million or more has jumped 18 percent this year, one of the strongest increases since 2008, according to Realtytrac.
Brokers for luxury real estate are already calling 2012 the “The Year of Capitulation” for wealthy sellers.
There are several factors behind the price drops. The high end of the market didn’t fall as much or as early as the broader market, since there weren’t as many distressed sellers that were forced to sell. Those wealthier sellers have hung on to their properties, waiting for prices to approach 2008 levels.
Now that they see that the prices of 2008 aren’t likely to return anytime soon, many are deciding to drop their prices just to get a deal. The increase in sales has itself spurred sales, as wealthy sellers see a larger number homes in their neighborhoods trading at lower prices.

Trying to sell a Wilmington NC Luxury Home in this market? What are the Key Elements.

VALUE--Due to current economic times, the inventory of Wilmington NC Luxury Homes is huge, and the buyer pool is certainly smaller and much more selective. Is your home considered a value in comparison to your competitors
EXPOSURE--Not just the MLS, cutting edge exposure using social media websites and viral marketing.

MOTIVATION--Buyers are sitting on the side-lines, watching prices fall and waiting for the perfect moment to swoop in to get a "deal."

As we have seen in the last 4 months homes are starting to move. Remember only the best priced, best in condition wins!