November Luxury Market Report

Did you ever think you would find yourself reading an article on "Pandemic Real Estate Trends"?

This year has been full of surprises.  The Luxury Real Estate market is fortunate to have seen steady growth for 2020.

Rather than fall apart, the luxury real estate market quickly adapted to the situation.  There is now a clear pandemic real estate trend emerging.  The real estate pandemic market is evolving as it begins to reach a state of more certainty.

There is a new demographic group forming, "Trail Blazers".  Trail blazers, like our forefathers are choosing housing locations based upon family, health, lifestyle.  They adjust that to their business or work proximity.  These "trail blazers" are one of a group composed of: Explorers, New suburbanites and Resort buyers.

EXPLORERS: (Trail Blazers)

they tend to be younger than 39.  They are ready to seek adventure outside the big cities and suburbs.  They want to stretch their dollar and they value life experience over status.

Explorers are more open to rural, non-traditional luxury markets.  Markets were open space, better schools and family friendly entertainment are easy to find.

As buyer's Explorers are looking for a luxury market professional who understands their wants.  They want all their surroundings to support physical, mental and spiritual health.  Besides being under 39 they have a net worth of $1-5 million, and 40% have one child.

NEW SUBURBANITES:

This group includes professionals who may not have full work-from-home capabilities as entrepreneurs, business owners or senior management.  This means an occasional commute to their location office.

They tend to be older, 39-54, with net worths between $5-10 million.  They are married with two or more school aged children. They are likely to spend on luxury purchases like sports cars, boats, art and upscale health and wellness treatments.  They show their preference to showy luxury.

As buyer's they are looking for bigger, more comfortable version of what they already have. They are not looking to explore.  They want a home that is more comfortable for everyone in the family while they are in close quarters with each other during the "lock downs".

RESORT BUYERS:

This is the oldest group of the three.  The Resorters are ready to enjoy retirement in world-class vacation destinations.  Destinations where they can enjoy fresh air, recreation and luxury amenities; such as, skiing, wine, golf or yachting.

Their net worths of $10 million or more make it easier for them to make a choice of where to live.  They may own multiple properties and are looking for FREEDOM.

They also prioritise health and wellness, but sophistication and luxury are equal priorities, much more than the other two groups.  * taken from Institute of Luxury Real Estate Marketing, November 24, 2020.

This article makes sense when one tries to understand our market with sellers moving out of state or out of the area.  The transition is nothing more than the groups moving or transitioning within our area.



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