Whenever I am part of a large group, like last night's wonderful Thanksgiving in Burlingame, the question about the market always comes up, because they all know that I'm a Realtor, and might have the "inside scoop". Of course, what they really mean is "Has my house's value gone up or down."
Having just read Sue McAllister's article about the recent increase in value of high-end Bay Area properties, I was especially prepared with the answers, but we've been seeing this trend in our office for some time. It's obvious that home sales in more expensive markets are more brisk than in less expensive ones, where first-time buyers are hampered by tighter mortgage lending standards. These buyers see the high default rates by subprime borrowers, and resist buying in a soft market.
But in the higher price ranges, especially $2 million and up, buyers are less affected by interest rate changes, and are financially able to buy if they choose. The luxury market is active, and these affluent buyers even face a scarcity of attractive inventory in some areas.
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