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.
This month’s report reviews the current statistics for the luxury market in North America month over month, as well as the 13-month trend.
In this month’s review, we take a look at the report by Wealth-X, a world leader in wealth information and insights, titled “How Will the Wealthy Fare in 2020?”,
Their analysis is particularly pertinent to the luxury real estate industry as it offers statistical data as well as provides the basis of understanding the impacts of wealth on the spending power of the affluent.
The report highlights the growth of wealth, but in particular the significant increase, both in the numbers of individuals as well as their total wealth, of the Very High Net Worth (VHNW). This was the fastest-growing demographic during 2019 – whose net worth is valued between $5-30 million.
It explains how and why North America saw the biggest growth in this demographic cohort and the significance of 80% of this group being self-made; with their own distinctive traits, origins of wealth and how they allocate and prioritize their assets and wealth.
Wealth-X not only predicts that the number of ALL high net worth individuals (those with $1 million + in net worth) will continue to grow, but if there is a recession in the US that the VHNW cohort would still continue to grow.
For homeowners looking to sell their luxury home in today’s market, we recommend working with a realtor who can capitalize on the preferences of current investors. By carefully focusing on the lifestyle-specific niche your property offers, in line with trends, it can be marketed effectively to connect with the right potential buyers.
Get exclusive insights into the upper-tier real estate market at one of our live or online training sessions. Enroll today!