It is no great surprise to anyone that we're in the middle of a financial crisis currently; whether that crisis is a recession or post-recession is anyone's guess, but what is a fact at this time is that previously desirable homes are sitting vacant and unwanted all over the country.
There are a lot of problems at present surrounding the glut of luxury homes in America sitting on the shelf. First, there are more and more luxury homes going on the market as we weather the economic storm. Many owners of luxury homes just cannot afford to keep them at this time, particularly as their values have fallen.
Whether talking about a McMansion or an actual well-designed luxury home, there are many things that they have in common. Due to size, these homes are expensive to heat or cool and depending on the landscaping may be prohibitively expensive to maintain the house and grounds.
Buyers are aware that the values of all homes have decreased, but many owners of luxury homes refuse to budge on the price of these white elephants. Keeping these expensive homes at an unrealistic asking price seems to be an irrational way to pay off your outstanding debts like so many home owners with their houses on the market are trying to do. To pay off your debts you need to actually sell your house. In fact, some agents won't even agree to list a home if the owners aren't flexible about the price.
There are a lot of reasons why prospective buyers aren't looking to buy these homes: they're often over priced for the value, they're pricey to buy and maintain, and overall the home buying trends are leaning far to the side of smaller homes. Many of these luxury homes were second or vacation homes for wealthy owners and frankly not many people can afford second homes at this time.
What people seem to want are the mid-sized homes that don't come with a huge price tag to buy or maintain. These mid-sized homes have enough room for you to comfortably live in without the blatant conspicuous consumption that we're hopefully moving away from as a society now that we actually need to start thinking about what we're spending our hard-earned money on.
Unfortunately more and more of the expensive homes are ending up on the market and taking longer and longer to sell. The truth is that these homes are often just not worth what many of the asking prices are set at. What needs to happen to this market is for either the owners to be more reasonable about what they'll take for these homes, or for a new market for them to evolve like subdividing them into apartments or using them for private care facilities.
Hopefully a solution is found soon.
Learn all about Florida's Emerald Coast, and the Destin real estate market, at EdKirkland.com. This site has everything you need to get started in the market, whether you're buying, selling, or investing. Our users enjoy a free home search and extensive information on local communities, such as the Seagrove Beach real estate area.
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