Wealthy more likely to be buying real estate

Though home prices are at some of their lowest points in years nationwide, many are still finding it difficult to purchase a home right now. However,wealthy homebuyers have been purchasing properties with ease, as prices are low and the stock market begins to perform well again, according to CNN Money.

According to information from MDA DataQuick, the sales of million-dollar homes through 2010 increased in all 20 major metropolitan areas reported, with an average 18.6 percent increase compared to a 2.8 percent decline in home sales outside of that market, the source reported.

The highest increase in homebuying occurred in San Jose, California, which had a 27.4 percent increase in million-dollar home sales, the source said.

"It hasn't been a good six months for all people, but it was a good six months for rich people," Glenn Kelman, from the real estate brokerage Redfin, told the source.

CNN Money also noted that, in addition to increasing consumer confidence, the rise in sales may also be due to falling interest rates for mortgages that exceed $417,000 and used to cost homebuyers an average of 1.8 percentage points more in interest. Today, moving into a million-dollar home only carries about 0.6 additional percent in interest.

The trend is also appearing in smaller markets, such as the Hamptons in New York, where 38 homes with asking prices of $5 million or more were sold in the fourth quarter of 2010, according to a report by Prudential Douglas Elliman.  

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