While nearly everyone has grown tired of the term “unprecedented” this year, there’s certainly no other way to describe the 2020 luxury housing market and the resulting real estate boom.
As the year draws to a close, the sheer volume of luxury homes for sale continues to skyrocket everywhere — from rural destinations to popular resort locations.
While this month showed the typical signs of a holiday slow-down, even the number of sales of single-family homes in big, metropolitan areas like Los Angeles, San Francisco, Boston, and Chicago are overall higher than they were in November 2019.
So what does this luxury real estate boom mean for you?
Very simply, it means there has never been a better time to become a luxury real estate professional or double down on your growing practice.
Along with the lower mortgage rates and price points dropping, the affluent continue to turn their attention — financially speaking — to creating a home that offers them all the attributes they need in order to maintain a certain quality of lifestyle.
Affluent clients are also looking for…
And anything else that will put them ahead of the crisis and help make them comfortable while doing so.
Some great lead generation opportunities during this unexpected real estate boom are…
Luxury market reports (which are done for you if you’re an Institute Member or have your CLHMS™ designation)
A guide to smart home amenities that will make pandemic life more palatable
Automated email flows outlining unique investment opportunities
A free home valuation tool
A guide to safe relocation practices
More than ever, affluent clients are looking to their luxury real estate professionals to help them adjust to this new way of life for the time being.
Like everyone else, the affluent are preparing for a long, uncertain winter as COVID numbers continue to rise — meaning the luxury real estate boom is almost solely driven by the need for an all-in-one home base with a “sanctuary” feel.
The bottom line? Though there was a brief pause at the start of the pandemic, the luxury real estate market has more than bounced back, and has done so with great momentum.
Looking forward, here are a few interesting trends emerging from this year’s luxury real estate boom:
Relocations to Tropical and Resort Markets
Without the obligation of a commute, and without easy travel, most affluent clients are looking for homes that also feel like a vacation getaway. So, it makes sense that markets with more nature and lower COVID rates — like Lake Tahoe, Hawaii, the Carribean, Breckenridge, or even Whistler in Canada — are getting ample attention from luxury real estate buyers.
In fact, winter ski resorts in both the United States and Canada have not only seen high sales volumes, but they have also continued to see inventory levels fall and prices increase over the last few months. There has even been an uptick in sales with buyers purchasing sight unseen, and sales of large, outdated properties that have either sat on the market for an extended period of time or have previously not been easy to sell.
The Resurgence of the Pied-a-Terre
For the affluent who aren’t quite ready to make a permanent move to a more rural or resort town, the “pied-a-terre” has reemerged as an easy option. These smaller units are perfect for the affluent client with school aged children who aren’t ready to completely relocate, or for couples and families who want to stay extra safe during travel by skipping hotels and having a place of their own to stay in.
An Increase In Sales for Attached Properties In Major Metropolitan Cities
At the beginning of the pandemic, attached homes in major metropolitan cities saw a big decrease in popularity as folks sought more space and more nature to get them through lockdown.
Now, lower mortgage rates and price drops have led to a resurgence of interest in major metropolitan cities, even in smaller attached homes, with a 57% increase compared to last November.
Will 2021 Be the Year You Become a Certified Luxury Home Marketing Specialist™?
Both becoming a Member of the Institute and earning your CLHMS™ designation gives you access to some of the top producers in the industry and done-for-you marketing tools that give you an absolute advantage.
The Institute also offers a wide range of resources for you to invest in yourself at any stage in your luxury real estate career — even if it hasn’t begun yet.
Visit your Membership Portal for brand new training sessions, as well as our book, Rich Buyer Rich Seller: The Real Estate Agents’ Guide to Marketing Luxury Homes, which is available for free to all Institute Members and also available on Amazon.