Welcome to 2020 and our review of the previous year, 2019, in conjunction with the current luxury market in North America (US and Canada).
In a snapshot of 2019, despite pessimism at start of the year, the last quarter showcased a strengthening, with an upswing in the luxury market for sales in both the single family and condo markets. There has also been a slight trending upwards in both the listing price and sold price as we look at the whole North American Market*, which reflects a feeling of confidence in the market.
According to reports from many luxury real estate professionals, the significant increase in number of properties bought at the end of 2019 versus 2018 is reflective of an early 2019 holding pattern. Many of early 2019’s prospective luxury buyers held off while waiting to see how prices would react to new tax regulations and other policy changes. Buyer confidence returned in late spring and compared to 2018, above average sales were reported in the final quarter of 2019.
In January 2019, this report showcased a very minute difference in the number of sales compared to end of the previous year 2017, making this upswing in sales at the end of 2019 significant. Many forecasts are predicting, if all major outside influences remaining consistent, that the market will continue to strengthen as we head towards spring.
Interestingly, the increase in sales in the US and Canada drove from within and Realtors are reporting a substantial growth of North American buyers rather than international purchasers. The rising cost of luxury homes could be one deterrent, but it’s more likely that affordability and improving economic conditions in Europe are attracting these foreign investors. Equally, it seems that US buyers are also attracted to Europe and Canada as the exchange rate has become more favorable, boosting their purchasing power.
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