The final Luxury Market Report of 2018 takes a reflective look at the year’s luxury property market, its demographics and trends, and how these influences are now impacting change in the purchase of real estate by the high net-worth.
December’s luxury property sales for North America (the US and Canada) show a decline in sales compared to November, however, and more importantly, there has been no significant changes with respect to price, sale volumes, inventory and median days a property is listed when compared to December 2018.
If all indicators show a consistent, reliable and steady luxury market then the “changes” in this sector of real estate must be attributed to demographic shifts in the purchasing power, preferences and geographic demands.
When looking at the changing demographics in luxury real estate, a report distributed in September 2018 by Wealth-X notes that 67.4% of the ultra-wealthy were “self-made,” while a mere 10.9% purely “inherited wealth.”
Understanding how this wealth has been generated and by whom will be key to understanding both today’s requirements and future expectations of the type of real estate that will be in demand.
Also important to note, is that today’s wealthy is placing a higher demand on, “time, rarity and experiences,” rather than materialistic items.
To quote Jim Walberg, one of the Top 1% of REALTORS nationwide, “Luxury, from their perspective, is the enjoyment of the best of life, and it takes a conscious effort to seek it out. The words used over and over again were, ‘It must be worth it.’”
Included in the report is a chart detailing the top 5 interest by age groups of Ultra High Net Worth Individuals.
The December Luxury Market Report also takes a look at how design in luxury real estate has changed over the course of the year, with emphasis on the big, the bold and the beautiful, as well as the overall importance of bringing relaxation into the home.
For more information as well as key facts and figures about the current state of the luxury market, click here to check out our digital Luxury Market Report for North America.
Members of The Institute have access to download the full report which also includes monthly reports about luxury markets in over 55 cities in North America – by clicking here and using their membership login.
To understand how to this report can assist you in taking your luxury real estate business to the next level, as well as all our other unique luxury tools and strategies click here to apply for Institute Membership today!
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