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.
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”