A recent article from J. P. Morgan’s Real Estate Outlook entitled, Luxury home prices expected to climb higher reinforces speculation luxury homes prices will rise this year. They site 6 key trends to support their expectation.
- Accelerating GDP growth marks the beginning of a new business cycle in the United States
- Higher equity prices have disproportionately benefited high-income households
- High-income households are more confident about the U.S. recovery
- A limited supply of trophy properties for sale intensifies demand and pushes up prices
- Overseas buyers view U.S. real estate as a safe haven asset
- Home valuations are fair and benefit from the low interest rate environment