Why Buying Luxury Homes in Lesser Known U.S. Cities Makes More Sense
High-end homes in the U.S. have become more popular for investors and individual buyers, although the place where you intend to buy will be a factor for a profitable return on investment.
In Washington State, for instance, the luxury home market in Seattle is among the top five cities based on price growth. Those who still look for an alternative should consider buying a prime real estate in Tri-Cities, WA, for example. Rcsothebysrealty.com shares more information about the market.
Seattle ranked as the fifth hottest luxury home market after the median listing price rose 42.1% to $1.48 million in April 2017. The million-dollar housing market in Bellevue ranked next, having the same median price, although it only increased 41.5%.
The market in Santa Monica, California, recorded the highest growth in luxury home prices in the same month. The median listing price in the city rose 60.7% to $3.05 million. West Newton in Massachusetts trailed behind with a 60.4% increase in the median listing price, which amounted to $2.22 million.
A Seller’s Market
If you plan to buy a luxury house as an investment, pay attention to market indicators that may affect a sale in the future. Oversupply and fewer buyers in a certain area serve as the main factors for declining prices in some cities, such as Denver and New York City, which used to be popular among investors.
Some markets have been deemed more favorable to home sellers than buyers. These markets include San Juan County in Washington State, which was the state’s most expensive housing market during the second quarter of 2017.
If you had $1 million, where do you plan to buy a luxury house? Think carefully and be mindful whether you intend to sell it in the future, as not all popular high-end housing markets are guaranteed to provide you with a good return on investment. Good decision-making is necessary.