It is a situation that is turning up in real estate markets both domestically and internationally.
Premium real estate is selling at a record pace while lower- and mid-price housing lags behind. In Providence, Rhode Island, high-end properties that were previously taken off the market due to an inability to find buyers are now finding buyers more readily than other types of housing.
Singer Taylor Swift purchased a house in the highly valued Watch Hill community for $17.75 million in April. Another property sold for $5.3 million in July. The residence, which originally listed for $7 million, was sold via an online auction with a minimum bid of $3.5 million.
Why are the high-end houses selling now? There is no patented answer to explain the situation, but the difference is substantial.
So far, 2013 is turning out to be a respectable sales year for Rhode Island’s luxury real-estate market. Statistics from the Rhode Island Association of Realtors show that from Jan. 1 through June 30, 62 houses were sold at prices of $1 million and above, a level slightly below 2012, but far better than 2009-2011, when the luxury market was in a slump. The inventory levels indicate that the high-end market is still a buyer’s market.