2018 was predicted as the year of change – not just in North America but globally – for the luxury real estate market. This month’s report continues to look at the validity of these predictions by analyzing the data and reviewing the trends that have developed.
It is important to understand buyer trends and their impacts as they can greatly influence the value of a home, especially in the luxury real estate market. Understanding trends can help prevent a property becoming outdated, explain how outside influences such as tax can create unexpected consequences and explain why a property’s value is not just reflective of local factors – as luxury buyers are becoming more global, varied in their lifestyle choices and influenced by technology.
Several pertinent trends we have seen on the rise include the revolution of the summer home, a shift in the McMansion landscape and women having an unprecedented impact on luxury home styles and amenities.
Summer homes are no longer simply used for a two-week getaway, due to technology and the ability to work outside the office homes are being purchase with the purpose of a place where an individual or a family can spend an entire summer.
With wealthy women on the rise we are seeing a larger emphasis being placed on incorporating different design and style preferences. Outdoor areas are being incorporated into the living space, open plan concepts with designer kitchens are becoming the focal point for entertainment, the introduction of second home office as well as a greater focus on technology, safety and recreational amenities being included into high-end homes.
In addition to these trends, we’ve also collected important statistics that allow you to best market for and assist your luxury listings. Statistics open up a whole gambit of questions – where the median PRICE may not fluctuate, what is interesting to see is that over the last 3 years there has been a marked increase in the NUMBER of sales. The number of luxury Single-Family home sales rose 9.4% in July 2018 compared to July 2017. Luxury Attached home sales are ahead of July 2017 by 13.7%. This now begs the question, if money is remaining within the luxury real estate market, what is the change in this spending power?
To review more statistics and our more in-depth analysis on the current luxury trends, click here to check out our digital Luxury Market Report for North America.
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