As people realize their needs are changing, some are turning
to luxury housing to find their dream home. Investopedia helps define what
pushes a home into this category. In a recent article, they point out that a
luxury home isn’t only defined by its price. Location is also an important
factor. It could be a condo at a desirable city address, a spacious home on the
water, or one with access to luxury activities like arts and entertainment,
high-end shopping and dining, and more. The home itself will also boast some of
the finest features available.
According to the Luxury Market Report from the Institute for
Luxury Home Marketing, there’s been a substantial increase in how many buyers
are purchasing luxury homes over the past two years. It says:
“. . . North America recorded the fastest growth of
demand during the first year of the pandemic. Also, demand has . . .
consistently increased, and even in April 2022, we saw a higher volume of sales
compared to 2021.”
If you own a luxury home, it could be a great time to list
your house today while demand is so high. But first, let’s understand where the
demand is coming from.
What’s Driving the Heightened Buyer Demand for High-End
The same report says more people have reached a certain
net-worth threshold, and that’s contributing to the increased interest in
“In 2020, we saw a 2.2% growth in the number of
individuals with wealth of over $5 million in net value, but in 2021 that
number grew by an outstanding 19.8%.
This total increase has resulted in the introduction of over
660,000 new individuals into the high net-worth bracket, which, combined with
the existing affluent looking to both diversify and add new properties to their
portfolio, provides a true insight into why the demand for luxury properties
skyrocketed during 2021 and into 2022.”
So, if you’re looking to make changes to your real estate
portfolio or are looking to sell your current house, it may be a great time to
list and benefit from the high demand for luxury homes today.
If you own a luxury home and want to know how strong demand
is in your area, let’s connect so you can capitalize on current market
conditions while buyer demand for upscale homes is so high.