In June I posted about the upper end market and its rebound.  Since then, we’ve seen the market continue it’s up and down course. So what does the upper end market in our region look like today?

First, inventory of $750,000 and plus homes in the Triangle, Triad, and Greater Charlotte markets has decreased significantly in the past 12 months. In fact, inventory is at its lowest level during the past 24 months.  New home inventory is not getting replaced so expect to see inventory numbers continue to decline.

Second, demand has increased 40% or more in these same markets since a year ago.  Why? There are great values in the market as median prices have dropped 10% or more.  There have been comments from Wall Street Journal, Karl Case, John Paulson and others that now is the smart time to buy real estate and the wealthy are heeding the advice and buying homes.

As we review statistics nationwide, The National Realtors Association’s (NAR) last Existing Homes Sales Report showed that sales were up 6% from the same time last year (2^nd quarter 2010 vs. 2^nd quarter 2009) for homes $1 Million and above.

And as Steve Harney posted, jumbo mortgage rates have dropped from 6% to 5% which could mean savings of over $38,000 a year on a $1 Million mortgage.

A great website to follow the luxury market is The Luxury Portfolio Fine Property Collection.  Luxury Portfolio is the luxury partner of Leading Real Estate Companies of the World, the largest global network of premier locally branded independent brokerages.  On the website you can follow recent sales as well as view all available inventories across the world.  In the past 2 months alone, the website reports sales of homes with a list price of $4 million. 

It is clear that the wealthy buyers are confident about investing in residential real estate.  Perhaps we should follow their lead and take advantage of historically low rates and great values.