Due to September’s luxury market basically being unchanged in terms of demand, number of homes sold, average values and days on the market, the Institute for Luxury Home Marketing (ILHM) turned its eye to emerging trends in its October monthly luxury report.
The ILHM sees a gradual shifting to new markets and new products. As Millennials take over the driver’s seat from the Boomers in the luxury market, the ILHM sees purchase decisions leaning towards lifestyle choices, experiences and amenities. Buyers are shifting away from “grandeur” towards minimal luxury with a focus on more functional spaces that are easier to maintain.
“Being part of a community” is becoming more and more important…not just any community but a community that offers common and shared luxury activities, facilities and amenities. And lux buyers want many communities, many residences, rather than one, in a varied range of locations so they can experience any and all of their passions, such as golf and skiing and tennis and equestrian sports and boating and…without having to concern themselves with maintenance and repairs.
Now that many downtown core cities are regenerating themselves based upon listening to buyers demanding to live in vibrant, safe and social environments, suburbs of those downtown cores are doing the same. And these “hipsturbias” are popular. And why not? These hipsturbias are more affordable that core downtowns and they easily integrate the concept of living, working and playing within a community.
Lux buyers want, according to ILHM, maximum efficiency with a minimal impact on the environment. They want high walkability scores in lux development and communities that enhance their eco-conscious lifestyles.
By wanting to essentially downsize and diversify their property portfolios, it is a bit easier to get into the luxury market for both buyers and agents. Luxury buyers and agents no longer “have to be” in Los Angeles or New York or Aspen to realize their goals. They can be in more focused markets that mirror their lifestyle choices.
ILHM suggests that agents target lower-tier luxury clients in mass affluent markets and develop expertise within those markets. Luxury clients of all tiers want to work with experts. And while you’re at it, ILHM suggests that agents pay attention to aesthetics in all of their branding efforts. Use one color in addition to black and white rather than several to communicate your expertise and your taste. Use active verbs and nouns rather than adjectives and adverbs to communicate to communicate your knowledge. Use clean, uncluttered photos and videos to guide, not distract, your clients to your “products.” And be attentive to your clients’ needs and wants, not your own.