While the world experienced a rather tumultuous and unprecedented month, our April Luxury Market Report showed the luxury real estate market held its ground.
Compared to last month, there was an increase of 2,282 single-family homes sold in the North American luxury real estate market, though there was an $80,000 drop in sales price. Our report shows that buyers are still searching for luxury homes for sale, and that homes are selling for 97.58% of the asking price.
2019’s strong end of the year numbers and 2020’s strong start had just started gaining momentum as we entered the Spring market, and that momentum may ride out a little further before we start seeing drops in inventory or an increase in days on the market.
In an interview with RISMedia, Institute President Diane Hartley explained, “The demand to stay at home hasn’t stopped the sale of properties, rather it seems to have given homeowners and realtors the opportunity to reassess; resulting in a better understanding of how to adjust, learn, and then make the appropriate changes during this fluid situation.”
The Institute sees this time as a chance for agents to deepen their relationships with their clientele and grow professionally in ways they may not normally have time for.
How Is the Luxury Real Estate Market Responding to Covid-19?
While the luxury real estate market has remained fairly steady so far throughout the crisis, April was predicted to see a 30-35% drop in inventory compared to last year, the final results of which will be available in May’s report.
This significant drop is good news for sellers who are likely to have the upper hand in the coming months, as it appears people are hunkering down rather than “panic selling” in response to Covid-19.
Overall, the market is still seeing movement, but agents and their clients are getting creative on new ways to show homes, negotiate, and keep transactions moving.
Many buyers and sellers in the luxury real estate market have been responsive to virtual showings via Zoom, while others have decided to opt-out of the market until conditions are more certain.
The biggest challenge presented is closing contracts, since many states still require in-person signings and notarization. However, we may see changes in some of these requirements as time goes on in an effort to keep the luxury real estate market moving.
How to Stay Top of Mind During This Time
Whether or not your specific luxury real estate market is particularly active during this time, the best way to stay top of mind is to focus on becoming a resource for your community. Even without a global crisis, the Institute encourages luxury real estate agents to shift their focus from selling to relationship building.
Affluent clientele want to know what is happening in the market and is relying on your expertise during this time, giving you the perfect opportunity to connect.
Some ways to educate your market are:
Hosting live streams or posting weekly Youtube videos to cover topics like buying, selling, investing, or wealth management
Emailing a monthly market report, including your summary of the numbers and your suggestions for moving forward
Consistent social media posts
Additionally, giving folks in your network a call to check in and simply ask how they’re doing can go a long way. Calling with the intention to just listen, make sure they are safe and well, and offer your support in any way can create a lasting impression.
How to Move Forward
It is more important than ever to stay open to making adjustments in your marketing strategy for yourself, your sellers, prospecting, and overall planning. Since we’re still not sure how this crisis will impact the luxury real estate market, it is best to take it day by day and truly listen to your clientele to see how they want or need to move forward.
Stay Connected Professionally
We’re staying committed to your professional growth in a number of ways during this time. Here are a few of our best resources to help you continue growing your skills and your practice from home:
Luxury Livestream – Luxury Livestream will replace our Luxury Live Events, and still qualify agents for their Certified Luxury Home Marketing Specialist designation and its exclusive benefits.
Ditch the Pitch – This one-of-a-kind training is for Institute members only and helps agents master the art of relationship building with affluent clientele. All current CLHMS designees can access this course in their membership portal.
Estate of Mind Podcast – The Institute has taken some of its best members-only trainings, instructors, and other guests to bring you into the most important conversations happening in luxury real estate right now. You can access these for FREE on any podcast platform or The Institute’s Youtube channel.