Luxury market will bear interest hikes - Brief Article

Recent developments in the economy and the latest shiver on Wall Street have caused interest rates to rise. However, this new environment has not affected the luxury residential buying market. Fortunately for sellers, luxury buyers are not concerned with the rising interest rates. However, this same element is a determining factor in the buying decision for individuals in other market sectors. Higher interest rates are a deterrent for these buyers when budgeting for a home.

Firms such as GuardHill, which target the luxury residential market, continue to find success even in what would seem to be unfavorable economic circumstances. This progress can be attributed to a number of factors, including the skyrocketing bonuses on Wall Street, the overall continuing prosperity of the economy, and the surging number of entrepreneurs in the new media and Internet arenas. Individuals that fit within these categories are finding themselves chasing a depleting inventory.

Unless this rise in interest rates begins to affect the overall compensation of executives within Wall Street's most prominent firms, this trend is likely to continue. Should a reduction in individual earnings occur, the appetite for luxury real estate could easily be reduced.

Astute firms have recognized the potential for a diminishing demand and are taking proactive steps to eliminate the bulk of the risk. Part of GuardHill's business philosophy is to constantly expand its services into affluent marketplaces throughout the country apart from the potential of shifts in the market. GuardHill has plans to open offices in Palm Beach, Beverly Hills, Aspen, Phoenix and San Francisco in order to reduce the risk of such a lessening in demand.

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