This post was sponsored by Pacaso.
“We enable people to buy more than they would otherwise be able to afford on their own.” – 02:23
Austin Allison, CEO of Pacaso, joins Remy Blaire at the New York Stock Exchange to discuss to explore the current state of the luxury housing market in light of recent changes in mortgage rates. With the average 30-year fixed mortgage rate hovering around 6.6%, we discussed how these rates, influenced by economic factors such as labor market concerns expressed by Federal Reserve Chair Jerome Powell, are impacting homebuyers and homeowners looking to refinance.
Austin provided valuable insights into the housing market, noting that while overall housing sales have remained flat year-over-year, the luxury segment is experiencing a slight uptick in transaction volume and price appreciation. He emphasized Pacaso’s innovative approach to homeownership through co-ownership, which aims to redefine how people access luxury vacation homes. By pooling resources, a small group can afford a beautiful property that would otherwise be out of reach for individual buyers.
The pair delve into the concept of co-ownership, which Austin likened to the introduction of the 30-year mortgage a century ago, designed to make homeownership more accessible. Pacaso operates in around 40 destinations worldwide, allowing buyers to enjoy luxury homes without the hassle of traditional ownership. Austin explained how their model offers a hassle-free experience, managing all aspects of homeownership, akin to the NetJets model in the private aviation sector.