Terryl Carl
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People have certain housing needs, and as they change over time, so too do their needs. Although some people are looking for a basic place to stay – with just the necessities – others who want to live in a luxury home. But what is a luxury home?
Some people might think of one thing, while others perceive it to be something entirely different. There are a lot of factors that go into deciding if a home is luxurious or not. Perhaps it’s the type of location (for example, city versus country), or how functional the home is with the best possible amenities offered.
According to the Institute for Luxury Home Marketing’s Luxury Market Report, the number of buyers acquiring luxury homes has increased significantly over the last two years. It says:
“. . . North America recorded the fastest growth of demand during the first year of the pandemic. Also, demand has . . . consistently increased, and even in April 2022, we saw a higher volume of sales compared to 2021.”
If you own a luxury home, now would be a good time to list it because demand is so strong. But first, let’s look at the source of the demand.
According to the same report, more people have attained a particular net-worth level, which is leading to rising demand in luxury housing:
“In 2020, we saw a 2.2% growth in the number of individuals with wealth of over $5 million in net value, but in 2021 that number grew by an outstanding 19.8%. This total increase has resulted in the introduction of over 660,000 new individuals into the high net-worth bracket, which, combined with the existing affluent looking to both diversify and add new properties to their portfolio, provides a true insight into why the demand for luxury properties skyrocketed during 2021 and into 2022.”
So, if you’re trying to diversify your real estate portfolio or sell your present property, now would be a best time to list and benefit on today’s strong demand for luxury properties.
Buying luxury real estate, whether as an investment or a primary residence, can be an extremely lucrative, high-return opportunity. For one thing, luxury real estate makes a good low-risk investment; it actually tends to (on average) outperform non-luxury homes! And the value of luxury homes tends to appreciate faster than the value of non-luxury homes.
Whether you are interested in a luxury home or looking to sell your own, contact me today. I would be happy to offer my expert advice on the market conditions. Whether you’re buying or selling, you’ll find my experience invaluable.
Source: Keeping Current Matters
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