Market Update: Luxury Real Estate Report 2022
Trends of increasing home prices are predicted to slow as economic changes begin to affect buyer demand, and the market adjusts from a strong seller’s market to a more balanced market, however, demand for luxury homes may be less affected as affluent buyer demand continues according to recent reports.
Summarizing insights from the Institute of Luxury Home Marketing data research, Coldwell Banker and Berkshire Hathaway released luxury market reports focusing on luxury trends around the globe and their translation to the luxury real estate market insights as markets around the globe evolve.
real estate markets across North America appear to be shifting from a seller’s market to a more balanced market with the influence of changing buyer activity. Increasing interest rates, inflation, and an uncertain economy have buyers seeking stability and generating long-term wealth and well-being according to The Trend Report for 2022 by Coldwell Banker.
“A new kind of buyer’s market is taking shape in luxury real estate. A mixed set of factors has created a unique situation for affluent buyers where they are gaining negotiation ground yet still have to contend with low inventory and high prices.” Explains Michael Altineu, Vice President of Global Luxury Coldwell Banker Real Estate LLC
Overall luxury real estate is expected to be a good long-term investment according to The Trend Report for 2022. Some luxury is selling more quickly than others. Smaller luxury homes (under … sqft) sold over 18% faster than larger homes. Overall, luxury single-family home prices have increased by 60% since 2017.
In fact, luxury homes may be better suited to withstand economic uncertainty, even more, demand for superluxury real estate (homes over $10 million, or higher depending on the market) is higher than ever, explains Christy Budnick, CEO of Berkshire Hathaway HomeServices.
“The market is hotter than ever partly spurred by the pandemic, which prompted high-end buyers to seek properties that can offer comfortable and luxurious living.” Berkshire Hathaway HomeServices CEO, Christy Budnick explains.
In addition, An increase of international buyers has returned from overseas who appear enthusiastic despite rising interest rates. “As expected, international buyers made up for lost time after travel restrictions lifted and injected a flurry of activity into local markets. London, Portugal, and hubs across the U.S., including Austin, have seen renewed, and in some cases- even stronger interest from overseas investors, which has buoyed their respective luxury markets.” States Christy.
Top markets include London, New York, La Jolla/San Diego, Miami, Las Vegas, Madrid, Nantucket, Dubai, Aspen, and Oahu.
Instituite for Luxury Home Marketing – Luxury Market Report October 2022
ColdwellBanker – The Trend Report 2022 by The Report Group – Issuu
Berkshire Hathaway HomeServices 2022 Global Luxury Landscape Report by Berkshire Hathaway Homeservices – Issuu