The Luxury Real Estate Market Remains Fairly Resilient in April
Four Real Estate Brand Leaders Give a Better Perspective
There has been much speculation, as well as anticipation, about COVID-19’s effect on the luxury real estate market. Those invested in this marketplace have been eagerly awaiting our April figures and statistics to assess the current situation.
In early April, some real estate experts projected a 30-40% decrease in inventory and, with the vast majority of the US and Canada receiving ‘stay at home’ orders, it seemed that the number of sales would drop significantly. However, it seems instead that the luxury real estate market hit “pause” rather than the panic button.
According to Coldwell Banker Global Luxury’s Vice President, Craig Hogan, “our agents are reporting fundamental differences between previous crisis situations and the current impact. Buyer and seller confidence has remained high and while transactions are taking longer to close, mainly due the logistic limitations, both property prices and inventory levels have remained steady compared to previous months.”
Hogan did recognize that inventory figures were approximately 15-20% lower than the same period in 2019, but reasoned that this, combined with the pent-up demand that his luxury agents are reporting, had probably been instrumental in keeping home prices relatively stable.
Taking a deeper dive into the statistics for local markets we see there has been on average a 20-25% drop in the number of sales compared to the same period in 2019, but expectations are that we will probably see
a surge of buying once the virus lockdowns are lifted; with many predicting this activity to begin as soon as early summer.