The Institute’s Luxury Market Report is your guide to an analysis on the trends and comparative data on the top-residential markets throughout Canada and the United States.
April’s report reviews the current statistics for the luxury market in North America month over month, as well as the 13-month trend.
The Institute for Luxury Home Marketing both appreciates and recognizes the impacts that the Coronavirus pandemic will have globally on both human life and economically… and that it is highly unlikely that the luxury real estate market will remain immune from its effects.
However, at this time the figures for the luxury real estate market for the first quarter of 2020 showed very little slow down and are higher compared to the same period in 2019.
The report gives a detailed explanation and statistics that show this is due to a strong rebound in the last quarter of 2019 which then continued into the start of 2020. The luxury market numbers continued to trend up even into March for both single-family and attached properties.
According to Realtor.com’s Chief Economist Danielle Hale, who stated during her recent interview with RIS Media, “A low-interest-rate environment combined with a flourishing economy and record-setting stock markets pushed luxury sales into the double digits for the first time as 2019 came to an end.”
While many experts are predicting a 30-35% drop in inventory during April, at this current time there seem to be little signs of panic selling and property prices are remaining fairly steady. Real estate transactions are still moving forward and the recent pause over that last couple of weeks gave many the opportunity to calmly assess how to work within this new environment.
For an industry that 10 years ago would have shut down during this crisis, we review the effects of increasing inclusion of technology and online capabilities. How this has enabled not only the industry to carry on but how the ingenuity and collaboration of associated services are opening up a new way of doing business, which will probably change how transactions are conducted in the future.
For homeowners looking to sell or buy their luxury home in today’s market, we recommend working with a Realtor who can provide you with critical knowledge about your local market, maintain a high level of security during the transaction and knows how to leverage technology to provide maximum exposure and assistance.