Luxury Homes Across the Country Become More Affordable for Many
Owning a luxury home may not be a far-off dream for some Americans any longer.
While home prices across America continue to rise, there are a number of luxury homes for sale that are experiencing significant price cuts.
According to a July 25 Forbes article, some of these homes are seeing price reductions that cut away as much as 30% of the original listing price — and when a luxury home is technically any home that is valued at more than $1 million, a 30% discount is significant.
Real estate experts say price cuts like these aren’t out of the ordinary, as many luxury home sellers will make a bold initial asking price and gradually become more realistic and practical if the house fails to sell.
“The upper end is going to look at their property a one-of-a-kind piece of artwork,” Ken DeLeon, a luxury broker in Palo Alto, Calif., told Forbes. “You’re more inclined to see people try a bold number, a big number, to start. And when that fails, you have to kind of get more realistic …It’s no longer a Rembrandt, it’s just a home.”
For many home buyers who can’t afford a $30 million luxury home, but could afford a home that’s $18 million, these price reductions make the dream of owning a deluxe residence a reality.
However, the trend to slash prices of luxury homes for sale is far from universal — some high-demand areas like Beverly Hills continue to see home prices on the rise.
“I certainly don’t see it in Beverly Hills because the inventory is so minimal,” Jeff Hyland, president of Los Angeles real estate firm Hilton & Hyland, told Forbes. “We’ve seen a 20% increase in property prices, so I don’t see price reductions unless someone has bought another property, or there’s a divorce, or a death.”