The article makes it seem like everything “luxury” is on the way up. The biggest mistake real estate professionals could make right now is to assume that this applies across the board for luxury consumption. Luxury real estate is no where near positive sales. In fact, I would say that until the consumer portfolios are back to what they were in 2006, we won’t see a serious turn around in the high-end market.
A real estate investment is a totally different buying decision than clothing or even an automobile. I hope that decision makers won’t allow wishful thinking to cloud their judgment.
The only high-end property moving right now is for investment purposes. If you have the cash to invest in a piece of property, you are primed for a great return. This kind of real estate purchasing cannot bring back the luxury market. The truth is that most of us don’t have those kinds of assets so the idea of a returning market in the immediate future is just not cutting it.
The high-end affluent market will come back one day- just like our economy. Unfortunately, I think it will be later than sooner. Don’t be fooled by consumer spending on unrelated products. I would consider these feel good items for the wealthy. Expensive handbags and fine art don’t belong in the same category as mansions.

This entry was posted on Friday, December 18th, 2009 at 8:55 am and is filed under Real Estate Economics, Real Estate Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
#1 by Stacey Derbinshire on December 18th, 2009 - 9:00 am
I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road!