The Shock felt around the world on September 15th, 2008 shook our Luxury Market to it’s core as Lehman Brothers collapsed and the stock market tumbled. October 2008 was said to be the worst month in the stock market in 21 years. Massive amounts of money was lost on paper which resulted in the affluent buyers leaving the luxury market. Luxury home sales on the island dropped by 62.5% in one month and remained at that level through November also.
Fast forward to August 2009. The stock market is on it’s way up again as it saw it’s 5th consecutive day of gains climbing over 9,500 and the press is reporting the country is now out of recession. In the luxury real estate market the dust has settled and offers are beginning to fly in. During the first 10 days of September we have already seen 5 accepted offers on listings over $2,500,000 which is equal to the entire month of August. It may be due to the fact that inventory has dropped to only 191 active listings priced above $2,500,000 which is the lowest active count since January 2008 and prices have dropped by 12.1%. This may be the light at the end of the tunnel. The question I have is “How long is the tunnel?”
-Mandy Berner, RA
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.