As the year draws to a close, November’s statistics reveal that the luxury market remains solid, prices stable, and the median length of time, as well as the selling price to list price ratios, remain consistent. Sales are decreasing, but this is reflective of both the time of year and ultra-high-priced luxury properties selling at a slower rate than in previous years.
The luxury segment of real estate is often described as being a minor part of the whole industry, but is readily recognized as being a major influencer in creating trends and providing a barometer to changes for the industry. This month we are taking the opportunity to report on some of the key trends in 2019 that are responsible for creating and maintaining today’s affluent influence.
While each market certainly has its own nuances, an overall trend has become very apparent in the luxury market – it’s all about the finding a more ‘holistic approach to living.’ Savvy homeowners, luxury real estate professionals, developers, architects, and designers are all reporting a significant importance being placed on the infusion of a healthier cadence into our everyday working and living environments. Luxury is now about creating a comfortable experience that affords the feeling of luxurious well-being. These trends have certainly impacted real estate across North America, and it is anticipated that their influence will be far reaching into 2020s and beyond.
Migration to New Markets
This year saw a continuation and escalation of real estate investment into 2nd and even 3rd tier markets. Cities such as Dallas, Houston, Denver, Seattle, and Las Vegas may have been on the radar in 2018, but 2019 saw communities such as Jacksonville, Charlotte, Nashville, Cincinnati, Boise, and Kansas City added as markets of growth.
A combination of affordable property values, lower taxes, new job opportunities, and a more sustainable lifestyle has resulted in a migration away from the major metropolises to these secondary markets. As reported last month this trend is now global.
The broad picture indicates that the affluent are diversifying their portfolios. They are investing in both major cities and these new markets, but with clear differences being the smaller size of the properties they are purchasing and the amenities on their list of requirements.
It must be recognized that the affluent are an integral part of the movement to these new markets, after all they are often the instigators looking to maximize the potential revenue for their corporations, personal businesses, or start-up entrepreneurial ventures.
Luxury properties now need to be more than stopping off locations for a week here and there, they have to offer the full home experience allowing executives to live, play and work – and bring their family and pets with them too!
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