The affluent are trading up bigger more extravegant homes despite recession

A new survey recently published by New York City-based Luxury Institute and the Institute for Luxury Home Marketing show statistics that prove the affluent are taking advantage of the lower home prices and moving up to bigger, more extravagant homes. One in four U.S. consumers has bought a larger more luxurious home since 2008 and 23% of those are under the age of 50 and plan on trading up in homes in 2011. These statistics apply to those earning more than $150,000 per year but anyone can take advantage of this market. I tell my clients that as long as they are buying another home in the same area that is equal or more expensive they will not lose any money as the money lost on the sale is recovered on the purchase of their new home, in fact, if the new home they buy is more luxurious then they are actually saving more than what they lost. I have seen this trend myself with clients here in the Pinellas County area as they are buying homes directly on the beach instead of across the street on the bay since now they can afford that luxury of being directly on the sand! They are picking up bargains because, as we all know, the affluent did not get wealthy by throwing their money away. Here is a link to Pinellas County foreclosed homes to show you what you can pick up today for a fraction of the cost of just a few years ago. http://search.prestigefloridahomes.com/i/10704/PinellasLuxuryForeclosures  In conclusion, if you are looking to trade up, now is the time to do it as you would be losing some money on your sale but would save a higher amount on the new home therefore making money. (Please note, you would make money as long as the home you buy is more luxurious and expensive, if you down size in this market you would lose money).

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