Rich people are splurging on million-dollar homes again. Here’s why from Elaine Golden-Gealer

Elaine2aWant to get a good rate on a new mortgage? Two tips: Be wealthy, and borrow more.

For the first time in recent memory, lenders are offering well-heeled buyers large “jumbo” mortgages at the same — or even better — interest rates as smaller loans. The trend is helping fuel a resurgence at the high end of the real estate market. Sales of homes priced $1 million or more are soaring as lower-priced properties lag, accentuating the uneven nature of the economic recovery.

The share of homes selling for at least $1 million fell when the 2008 financial crisis hit, but it recovered faster than the rest of the market during the past two years. It now hovers at a level last seen near the housing boom’s peak in 2007, according to research firm CoreLogic. The rates help, and so does a robust housing market.  The number of homes sold for $1 million or more climbed 8 percent this year while those at every other price point combined fell 4 percent, according to the National Association of Realtors.

The sales at the higher end are clustered in a few pricey areas, including the Washington region, where purchases of expensive homes also have rebounded to near pre-crash levels, according to a Washington Post analysis of local sales adjusted for inflation.

Read more from the Washington Post here

DRE #00598428
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed

“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”