Luxury Home Market Starts to Rebound

"Interest rates have already narrowed between jumbos and conventional loans," he says.

Lanse Robb, another LandVest realtor, says wealthy buyers have been taking advantage of low mortgage rates to buy luxury properties at deep discounts, allowing them to redeploy their cash elsewhere.

While sales have fallen at LandVest in recent years, high-end market prices are holding fairly steady and people are looking to sell some impressive homes, Young says. Even though the economy remains fragile, Young says properties such as the Ames-Webster House offer special features that help them withstand weak markets.

The Ames-Webster House is one of the largest homes in Boston's affluent Back Bay neighborhood. The house boasts 50 rooms, 28 fireplaces, a mosaic-tile entryway, a great hall with carved oak paneling and a stained glass skylight atop a four-story staircase. The mansion was built in 1872 and served as the home of the prominent Ames and Webster families.

"We are finding buyers that realize it's a special time to acquire these generational properties," he says.

-- Reported by Theresa McCabe in Boston.

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