Luxury Homes Are in High Demand
As people discover that their demands are evolving, some are opting for high-end housing to find their dream house. Investopedia helps define what pushes a home into this category. They state in a recent article that a luxury home isn't simply characterized by its price. The location of the property is also essential. It might be a condo in an ideal city location, a spacious house on the water, or one with access to premium activities like arts and entertainment, high-end shopping and dining, and so on. The home itself will also boast some of the finest features available.
According to the Institute for Luxury Home Marketing's Luxury Market Report, there has been a significant increase in the number of buyers of luxury homes over the past two years. According to this report:
“. . . 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 have a luxury home, now might be an excellent time to put it on the market while demand is so high. But first, let's figure out where the demand is coming from.
What is Causing the Increased Demand for High-end Homes Among Buyers?
According to the same report, more individuals have surpassed a certain net-worth threshold, which is attracting greater attention to 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 thinking of making improvements to your real estate portfolio or looking to sell your existing house, now is a fantastic time to list and profit from the increasing demand for luxury houses.
If you live in a luxury home and want to find out how strong the demand for similar properties is in your region, connect with The Perreault Group, so you can capitalize on current market conditions while buyer demand for high-end houses is high.