27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Prices of luxury homes increased at double the pace of nonluxury homes at the end of last year, reaching an all-time high as a record share of high-end buyers paid cash.
The typical U.S. luxury home sold for a record $1.17 million in the fourth quarter, up 8.8% from a year ago, according to a report from real estate brokerage Redfin. Prices of nonluxury homes increased 4.6% year over year to a record $340,000.
All-cash buyers accounted for a record high 46.5% of the fourth quarter's luxury buyers, up from 40% a year ago.
According to Redfin, luxury prices are rising at twice the rate of nonluxury prices mainly because wealthy buyers can buy homes in cash, making high mortgage rates irrelevant.
"A lot of luxury buyers are coming in with cash, snapping up expensive homes," said Heather Mahmood-Corley, a Redfin Premier agent in Phoenix. "High-end homes are selling fast, especially in desirable areas like luxurious Scottsdale or Tempe, which West Coast transplants love because it's centrally located. One client recently bought a house in Tempe, flipped it and it sold for $1.4 million in two days."
Although low inventory is pushing prices up, the luxury home supply is up from a year ago, but it's still below prepandemic levels, spurring competition from affluent buyers for a limited number of homes.
10 Most Expensive Home Sales In Fourth Quarter
1. Miami: $79 million
2. New York: $75 million
3. New York: $65.6 million
4. Glenwood Springs, Colorado (near Aspen): $60 million
5. New York: $47 million
6. Glenwood Springs, Colorado: $42.3 million
7. San Francisco: $40 million
8. Fort Lauderdale, Florida: $40 million
9. Miami Beach, Florida: $35.4 million
10. Los Angeles: $34.6 million
The number of luxury listings rose 19.7% year over year in the fourth quarter — the biggest increase in over two years. Listings were up because high-end sellers put their homes on the market to cash out while prices were high: mortgage rates don't scare wealthy buyers as much as middle-income buyers: and new listings had plenty of room to grow from the the end of 2022 — their lowest level in a decade.
"More luxury listings will temper price growth as the year goes on," Redfin Senior Economist Sheharyar Bokhari said. "Overall, that's a good thing for the high-end market. Sellers will still fetch fair prices; buyers will have more to choose from and sales should tick up."
Don't Miss:
- Investing in real estate just got a whole lot simpler. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
- Ken Griffin says Miami will take New York's place as the U.S. Financial Capital. Here's how you can invest in the city with as little as $500 before that happens.
- Still keeping your extra cash in a savings account? You could be earning almost 12x more with a real estate savings bond that pays a fixed 7% APY.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!