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 photo credit: The-Lane-Team
We have all experienced the recession in some way, and every market seems to have felt some sort of hit, even the luxury markets are feeling the crunch. In a failing economy the first thing to go is the high ticket items. Many smart investors know that we havent hit the bottom of the market yet and are waiting for prices to plummet even further before purchasing a summer home or a vacation get away, which is causing some of the low numbers in the market.
Of course, luxuries of any kind are the first to be shelved when the economy turns upside down. We are not talking about basic necessities we are talking about the extras people afford themselves during the good times. So, its the luxury housing market that is the first to go when things get rough. Many business executives have a positive outlook for the economy, and that may seem like good news, but the numbers of positive thinking executives are decreasing, weekly.
Due to a wide spread feeling of caution, the rich were just not buying because of the financial crisis of 2008. Now, during the first quarter of 2010 the numbers of luxury home sales, all around the country, went through the roof. Now those numbers are stabling a bit. People are looking for deals, and they are worried about which way the economy is going to go.
Jobs are down, manufacturing is down, and the GDP is down. People are cautious and simply afraid of a double dip recession. Everyone wants to see where the economy will go before they start purchasing again, especially purchasing the big ticket items.
Read the full article from Bloomberg Businessweek
Posted on July 08, 2010 13:08:12 by  IPTV.Boyz
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