In spite of the hint of an economic recovery, the desire for expensive homes is dissipating as potential purchasers attempt to gather the funds for large down payments and have difficulty qualifying for hefty mortgages. As buyers disappear and homes that are for sale sit on the market, sellers are starting to lower their asking prices in order to get their homes sold.
This phenomenon results in many bargains for those purchasers who have a good amount of cash available. Because a home has a million dollar plus price tag does not necessarily mean that it is a palace, particularly if it is anywhere near the coast. However, between lowering of prices and slight increases in what buyers are willing to spend, the more luxurious features, such as spa-like bathrooms, gourmet kitchens, beautiful views and elegant architecture are now attainable.
The high-end market appears to be ready to experience a drop in prices. Up to now the lower-priced homes, which experienced the steepest price increases during the boom years have taken the worst hits of the continuing downward market trend. Now it appears as though it is time for the more expensive homes to decrease in price, bringing these homes within reach of more buyers.
