Real Estate Market As A Perfect Buying Opportunity

Whether you can buy a home right now or not is largely dependent on how much you make. The higher your income, the better the situation is for you to buy. It sounds pretty simple, but with a massive inventory of unsold homes ready to be bought, the opportunity for affluent buyers to put in a bid is perfect.

Who Is Likely To Buy Real Estate Right Now?

Unfortunately, many Americans cannot afford to move into a different house as they most likely need to sell their current one first. Since they are stuck for the meantime, these potential buyers are eliminated from the competition. This substantial cut of the real estate market ensures that the upper middle classes and wealthy can buy up homes for sale.

Perfect Buying Opportunity For The Affluent

According to the Annual Survey of Affluence and Wealth in America from marketing research firm Harrison Group, 77 percent of the wealthiest people in the country feel that now is a good opportunity to buy, while 40 percent said they would be buying real estate this year. Upper middle class participants agreed that now is the time to buy, at 67 percent, but only 17 percent said they were in the market to buy this year.

Real Estate Market Balances Out Investments

For most Americans, owning one home is financially burdensome enough. The wealthy, however, see owning a second home as a “requirement,” according to the survey. Nearly a third of the wealthiest participants surveyed said they were looking to buy a second home, while a quarter said they were looking for a third home. In this case, it seems as though real estate opportunities are more of an investment that balances out a portfolio, as opposed to buying a second home for pleasure.

While an overwhelming 79 percent of the respondents said the country is in a recession, 88 percent said they were confident the housing market would pick back up. Even so, there were a substantial number of upper middle class and affluent participants who were deeply troubled by the recession and 18 percent said the equity of their home was worth less than the mortgage owed. With such a large number of people worried about the economic state of the country, it looks likely that the people who will be buying immediately as prices continue dropping are the elite and wealthy.