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Wealthy remain upbeat about residential real estate

On Behalf of | Nov 1, 2016 | Residential Real Estate

While concerns about the future of the global economy and questions about the residential real estate market in Delaware and around the country persist, wealthy buyers will likely remain fairly active according to a Luxury Portfolio International survey. The real estate company asked wealthy individuals from 12 countries what they thought about the current residential property market, and most said that they remained optimistic despite some misgivings.

Demographic trends also give the sellers of expensive properties reason to smile. The number of individuals with a net worth of $50 million or more has increased by more than 50 percent over the last five years according to Credit Suisse, and this growth has been particularly pronounced in North America. However, realtors have not witnessed a surge in expensive home sales. The National Association of Retailers has reported that the number of homes selling for $1 million or more declined by 4 percent between July 2015 and July 2016.

The expensive residential real estate market looks likely to become more active in the years ahead. The international market research firm YouGov say that about a quarter of wealthy Americans plan to make a real estate purchase during the next three years, and that figure swells to 45 percent among affluent foreign individuals. However, 18 percent of the wealthy Americans surveyed and 23 percent of those from overseas said that they will likely be sellers rather than buyers.

Real estate transactions involving foreign buyers or sellers can sometimes be difficult to close. Attorneys with experience in this area may be familiar with many of the pitfalls involved, and they could suggest strategies designed to prevent disputes caused by misunderstandings or cultural differences. Attorneys may also draft agreements that make the responsibilities of all of the parties involved clear.