Jeff Adams Report 10 most uneven housing markets in USA Real Estate

Jeff Adams Real Estate Seminar Report 10 most uneven housing markets in USA Real Estate According to data released Tuesday from real-estate brokerage Red fin, sales of the priciest 1 percent of home are up 21.1 percent so far this year. Meanwhile, in the other 99 percent of the market, home sales have fallen 7.6 percent in 2014. Plus, they are often reddening with money thanks to the active stock market as of late.

Ten markets Oakland (96.2 percent growth), San Jose (91. percent) and San Francisco (72.2 percent) , as well as Long Island, N.Y. (72.1 percent) and Seattle (67.7 percent) have seen sales growth in the ultra-luxury space produce more than 50 percent just in 2014. In each of the above markets, the home sales for everyone but the 1 percent in fact fell from between 1.7 percent to 7.3 percent. 

But perhaps even more shocking are the prices the 1 percent is willing to pay for these luxury homes. In San Francisco, the most luxurious 1 percent of homes sold for $5.35 million or higher, in Los Angeles, $3,650,000 or higher and in Orange County $3,450,000 or higher. What’s more, certain neighborhoods within these costly cities blow those figures out of the water: In L.A.’s Beverly Glen neighborhood, luxury home buyers need to shell out an average of $11.9 million, its Humbly Hills neighborhood $9.9 million, and its Malibu Road and Malibu Colony neighborhoods $9.5 million and $8.8 million respectively. 

While banks don’t offer conventional loans for homes that are this pricey, let’s assume they did. In this case, a luxury home buyer in San Francisco would need a million-dollar down-payment plus an annual salary of $957,000 to qualify for a 30-year mortgage and he did still need to shell out $22,300 a month on top of that to cover his loan payments. 

Many housing markets are starkly unequal meaning that the top 1 percent of homes are priced considerably higher than the median house price in the area especially those near the beach. Consider the top 1 percent of homes in Miami the most unequal market in USA was priced 14.9 times higher than the median, those in West Palm Beach 14.1 times higher, and in Fort Lauderdale 8.8 times higher.