Wealthy Buyers Buying Again?

Nov 16, 2012 11:54:51 AM


In an interview with Laurie Moore, CEO of the Institute for Luxury Home Marketing, real estate news blogging Website AGBeat looked at the wealth recovery of the wealthy – a trend that had previously been on a downward slope during the Great Recession.

From AGBeat: “According to Moore, the Great Recession has not only reduced the number of wealthy, but changed attitudes and buyer behaviors. She notes that, ‘In 2008, as a result of the economic downturn, the number of wealthy worldwide, as measured by High Net Worth Individuals (HNWI), declined by about 15 percent, falling from 10.1 million to 8.6 million. At the same time, the amount of wealth held by this group also declined from $40.7 trillion to $32.8 trillion, a drop of more than 19 percent.’

As a result, demand for luxury properties slowed in 2008 and many remaining wealth holders took a wait and see approach, deepening the sluggish demand. But today, Moore reports that ‘more wealthy households than before are fueling home buying demand.’

‘Beginning as early as 2009, the number of wealthy worldwide and the amount of their wealth began to recover,’ Moore added. ‘By 2011, there were 11 million HNWIs with $42 trillion in combined wealth and demand for luxury homes had risen again. In short, the post-recession affluent shifted into a home shopping mode. We have seen the results of new demand in 2012. Many markets have seen a rise in luxury home purchases (and in some cases, rising prices as well).’” You can read the full article from AGBeat on their Website.


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