Luxury real estate market still afloat

Many real estate investors are looking to purchase a luxury property by taking advantage of low mortgage rates and depreciating home values. These buyers are pooling their assets to purchase the properties during the down market and expect to retain the homes for many generations as a long-term investment.

In an interview with CNBC, Nick Candy, international real estate developer, said many historic properties are being bought up by investors who want to obtain the beautiful homes that will likely not be built again for a long time. Because builders are not creating more luxury homes, the limited properties on the market are in high demand from these investors, thus pushing their prices up.

However, not all luxury homes are selling fast. NFL Hall of Famer Joe Montana recently reduced the asking price of his San Francisco home to $35 million, down from $49 million listed in 2009, Yahoo Sports reported.

The property for sale has three bedrooms, three and a half bathrooms, 10,000-square-feet inside and 500 acres of land outside. It features a pool, bocce court, an olive farm, a skeet-shooting range, a full-sized basketball court and an equestrian stable. After searching for a buyer for two years, Montana had to lower the price of the home, similar to sellers all over the country, the source stated.

More News