PARSIPPANY, N.J., Nov. 16 (UPI) -- Coldwell Banker of Parsippany, N.J., said Tuesday its luxury index found that luxury spending is resistant to interest rate hikes.
The Federal Reserve last week raised its key rate to 2 percent. But the real estate broker said 61 percent of U.S. owners of luxury homes surveyed said recent increases in interest rates would have no impact on their luxury item purchases. Over a third said that they are buying more luxury goods and services than ever before, with many of these purchases going toward making their homes more luxurious and valuable.
The Coldwell Banker study was conducted in August among 300 luxury homeowners, or those owning homes valued at $1 million or more.
The survey found that 85 percent already have security systems in their homes and 77 percent have gourmet/designer kitchens, home theaters will soon become even more prevalent in luxury homes.
Moreover, over the next two to three years, 35 percent of luxury homeowners plan on adding to or remodeling their property, 21 percent of those polled plan to relocate to another city and 15 percent plan to buy a second home in the next year or so.
