THE COLLAPSE OF THE AMERICAN LUXURY HOME MARKET 2022-2032!

The coming collapse of the " Little Caesar"  luxury homes will be a new shock to the real estate market.  We currently have 2,357 million homes valued at million dollars plus homes. The luxury market is entering into the "Greater Fool Theory of Investing".

 According to the new book, The Bubble That Broke The Bank we have entered into a recessionary phase of the luxury market. The market will be going down for the next 5 years. This will force sellers who have overpriced homes into a crash market.

 They need luxury buyers fools to buy their properties. Many luxury homes have high insurance and property taxes. Many luxury homes are frozen with high monthly costs and no buyers. We will start to see price reductions from $ 1Million to $10 Million dollars. Real estate brokers are working on new incentives to attract buyers who will become the greater fools of real estate investing.

 These homes are located in 22 cities in four major states: California(950,959), New Jersey( 100,000),  Mass. (63,256). and Connecticut (50,436). We have about 3% of all homes classified as million-dollar homes. Only 16% of American millionaires own million-dollar homes. Currently, 83% of all millionaires own homes that cost between $400,000 to $600,000.

The "Million Dollar Listing" will devaluate by 50% over 10 years. These homes will become low-performing investments. These homes are facing three major problems:

(1) Aging baby boomers who want to downsize their homes due to high costs of taxes, insurance, repairs, and maintenance;

 (2) The new 2023  tax laws have hit the coastal cities with higher taxes and taxpayers fleeing these high-tax areas; 

 (3) the Chinese and foreign markets are going into a deleveraging of assets. Chinese investors are facing a new emerging currency control of taking out only $10,000 US dollars.

The luxury home market must sell their homes at a 50% discount. The homes may face even lower discounts. These luxury homes have a very small market of buyers who make from $500,000 to $800,000 qualifying criteria. The majority of Americans can't afford these homes. This is a fantasy for lottery dream sellers.

 Currently, there is a large shadow inventory of homes that are coming to market. These homes are increasing the supply of homes and the decrease in demand is imploding the market. 

The millennials are not interested in old luxury homes. They are looking for new luxury homes that represent a different view of luxury. They are looking for a customized home that represents a comfortable view of ownership.

 The American and International real estate agents will be facing a 50% decline in commissions and fees. This part of the real estate market will end up only having 10% top producers. We estimate about 90% of luxury brokers will seek new areas of real estate. This will last for 10 years.

The Chinese investor market will be facing the new economic reality of a deleveraging economy. The Chinese economy will face higher tariffs, currency controls, and a collapsing American luxury market.

 This means that their current luxury home investment has depreciated by 50%. This money will be lost for 10 years. Chinese investors understand the coming changes in China! The Great Bear Market Real Estate, 2022-2026 is the most dangerous period for investment in Luxury homes. Buyer Beware, and Real Estate agents run for your life.