America's luxury market growing

The US may avoid a recession if the housing market can pull through. More so, luxury property is still selling well.

The most lavish real estate in the country is still selling. Some good news out of the housing market offers a bit of a healthy sign that some properties are still worth inflated prices that they are being sold for.

As reported by MSNBC, the ultra-luxury properties on the market are still selling well. Properties in East Hampton, New York, for example including the US $103 million property of 40 acres on the ocean and the US $49 million 29 room townhouse located in the Upper East Side of Manhattan, are still selling. Interestingly enough, while most house prices are falling, others are growing. For example, the 20 room townhouse had been on the market in 2003 at US $29.9 million. In just four years the property saw an incredible 64% growth.

The top 5% of the market is strong, enhanced not only buy the wealthy within the US but also by wealthy foreign investors who continue to come to the country to take advantage of the falling US dollar value.

In other news, a new report out by economists says that the US can avoid a recession. The housing market is to blame for the drop in job creation and consumer spending, but if the credit crunch here improves and the housing market is able to rebound some, the country may be in a better position and will avoid a full scale recession.

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