Wealthy Zip Codes Making a Comeback

The majority of U.S. cities are still feeling the pain of the houses crisis. However, as I predicted in a previous entry, market recovery in opulent regions should be faster. My forecast proved to be accurate. According to a CNNMoney article, over the last year, “million-dollar-plus” home sales have jumped roughly 19%. For example, “San Jose, Calif., had the biggest market for million-dollar homes, with a 27.4% spike in sales last year”. Unfortunately, this good fortune does not apply to the majority of this country’s population— homes sales (and prices for that matter) in cities such as Las Vegas and Florida are still falling

The reason for this jump in upscale home sales is actually quite simple. Rich people are returning to their old spending habits and are more confident in their ability to splurge. Not surprisingly, spending on homes has gone up. After all, real estate is also a good long-term investment— especially at a time when prices are relatively cheap.