Still-strong buyer demand and 3 other things to know about today’s luxury market
Our branches are in some of the most beautiful communities in the country. This also means some of the most beautiful – you may even say luxurious – homes are in our backyards too, which is why we know many of our customers have their eyes on what the luxury market is doing during the roller coaster of 2023.
Well, according to this article, that sector of the market is staying strong, thanks to investors still viewing real estate as a sound investment for the future. (More on that in a second.) As we all know, anytime demand continues to outpace supply, that’s good for sellers.
However, general preferences are starting to shift. Consider this piece earlier this year from the National Association of REALTORS® that pinpointed several trends that were already happening or were on the cusp of taking over the luxury market in 2023.
Bigger doesn’t mean better. More space was all the rage during the height of the pandemic for multiple reasons, but now smaller homes, between 2,500 to 3,500 square feet, have been selling nearly 19% faster than their larger counterparts.
Cash could be king once again. Higher interest rates have encouraged buyers to seek alternative ways to finance their homes. All-cash sales made up 26% of transactions in November 2022, up 24% from a year earlier.
Real estate remains a solid investment in the eyes of many. In fact, respondents to the last Coldwell Banker Global Luxury Trends Report of 2022 said they viewed real estate as a safer investment than stocks and bonds, cryptocurrency and pensions. Some of the reasons are that real estate can provide income or serve as an inheritance down the line.
Another reason the luxury market is still going strong? The continued presence of foreign buyers and investors. To our real estate friends, if you’re working with a buyer who is out of the country, let us know. That way, we can ensure that everything goes as smoothly as possible.
The bottom line is this: no matter the price point of your transaction, our teams promise to handle your file with care and provide the excellent service you and your customers deserve. We love our communities and want to make sure they continue to thrive for years to come.