Though housing markets at all price tiers are slowing a bit, luxury buyers continue wanting their voices heard. Here are seven emerging trends in luxury markets.
Lux Buyers Want Fully Outfitted Homes
According to Stan Ponte, an agent with New York City’s Sotheby’s International Realty, “…(luxury) buyers are literally buying everything…the furniture, the china, the curtains, the television on the wall, everything.”
Sellers may not be offering everything in the house, but buyers are essentially including everything in their offer price. Why? Because everyone appears to be on tighter timelines during the summer, particularly buyers with children who are dealing with school schedules.
Ponte said, “This is not just a New York City phenomenon. This is happening across all of our Sotheby’s International Realty markets all over the country.”
Art Investments
According to a report from ArtBasel and UBS, millennial art buyers were the biggest spenders of fine art in 2020. 30% of those millennial art buyers spent over $1M.
Now, of course, those millennial art buyers are wanting large, clean, white walls to hang their art. Tiffany Curry, Tiffany Curry & Co. Realtors at Berkshire Hathaway HomeServices in Houston, said, “…in addition to tech and cryptocurrency and things like that, we are seeing people purchase art and they are putting it in their homes.”
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No Holds Barred on Outdoor Spaces
Curry also said that buyers are making indoor-outdoor living permanent and are sparing no expense to do so. Buyers want outdoor kitchens, large screened-in rooms, custom ceiling fans or misters, sectional heating systems, and retractable screens that can be operated remotely.
Custom Builds with Upgrades
Despite labor shortages and supply chain disruptions that can extend building timelines and budgets, buyers are going all out. Curry said, “We are seeing people who are wanting about 25 to 30% over (the base price) in upgrades of the salesperson’s home…because…you see the model, and the base doesn’t look like the model unless you have all these different things.”
Some customizations include converting bedrooms into gyms or adding double square staircases.
Home for Every Need
“Being able to live, work, workout and entertain at home took on a whole new meaning during COVID and has become a part of today’s lifestyle,” said James Harris, an agent with The Agency in Los Angeles.
Harris is seeing buyers who want homes with state-of-the-art fitness centers, extravagant home theaters, car and art galleries, hidden panic rooms and elegant wine storage rooms.
And don’t forget about buyers wanting fully functional and beautifully designed home offices and/or learning centers.
Pent Up Demand & Climbing Interest Rates = Higher Search Volume
It used to be that potential buyers slowed their ” house browsing” during the summer months. Not so this summer. Ponte said that he’s seeing virtual touring exceeding prior summer data primarily for two reasons: people want to take advantage of current mortgage rates before those rates increase much more and clients want to have a good idea of property values in their primary markets.
Ponte said, “…My guess is when we look back at this summer, we will see a higher volume of transactions than we would expect.”
Luxury Staycations
The Agency’s Harris said that due to higher flight and hotel prices and fuel costs plus European travel disruptions “…we are starting to see more demand for US summer rentals…and opting for staycations by the beach, the desert or the mountains. Anywhere with a relaxing vibe and great walkability factor is key.”
Harris thinks opportunities abound this summer for people who already have rental properties as well as for those who considering purchasing a rental property. Harris said, “This is a great time to earn potential high-season rental income.”
Thanks to Inman.
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