$1 million plus homes continue to sell well

The top end of the real estate market is still going strong:

Across the map, the strongest growth in the residential real estate market lately is in high-end homes, according to the National Association of Realtors. In October, sales of homes at $1 million and above surged by 16.2 percent from the year before, while overall sales of homes were up by just 4.7 percent, the trade group said…

In the Chicago area, home sales in the million-and-up category were up 8 percent from January through September, with a median price (in that bracket) of $1.35 million, according to Re/Max Northern Illinois.

In Manatee and Sarasota counties in Florida (one of the leaders of the Bubble Country pack during the boom), 485 homes in the $1 million-plus category sold from January to the end of November, according to the Bradenton Herald…

His theory, apparently, is that the surging Dow has inspired confidence in average investors and has made them comfortable about putting their (other) money in real estate again, given that their savings are growing only incrementally within traditional investments.

The wealthy are still doing well in the real estate market while the rest of the market is still sluggish. How long can this trend last? In other words, could the top end of the market do well for years or longer while the bottom and middle struggle along?

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