Manage episode 323510174 series 3012659
The Next Normal and the Booming Luxury Real Estate Market:
With consumer and purchasing behavior having shifted as a result of the pandemic, the way we value homes is forever changed. Where do we go from here though, and which factors do we need to keep in mind as we move into the next normal?
If 2020 was the year of resilience, 2021 was the year of reconciliation — a return to our next normal that will not only be impacted by health, wellness, and safety, but also by an evolving sense of which elements are truly desirable in today’s luxury housing market.
Another factor that is set to substantially drive the luxury market? The enormous growth in wealth, particularly over the past year. With 20% wealth growth seen throughout 2021, the number of people who now maintain a net worth of over $5 million grew by a whopping 600,000 individuals.
With such an influx of new capital, many luxury clients have begun shifting some resources from more traditional investments to the properties they choose to live in. The driving factor of this shift continues to be a desire to enjoy a certain lifestyle that comes along with the property being purchased, continuing a trend in luxury that has become more and more prevalent over time, particularly over the past two years.
The Rise of Secondary Markets and the True Real Estate Advisor:
Luxury real estate inventory is perceived to be in short supply due to the ever-rising demand for new purchases, but that isn’t necessarily the case. While most luxury markets are hotter than ever, more traditional secondary markets, and even new, emerging markets, are also being impacted by luxury market demand. These new growth areas rose in popularity over the last two years, and will remain attractive luxury markets in the near future, particularly with changes in lifestyle that have stemmed from the pandemic.
New technologies have also emerged recently, allowing real estate professionals to work with an even more geographically diverse group of clients. Despite these technological advances though, it’s imperative to note that the human connection has never been more important, and real estate professionals should embrace their roles as trusted real estate advisors. Afterall, consumers are looking for a sense of authenticity when it comes to partnering with a real estate professional. They’re looking for someone who can not only direct their real estate needs, but also address their lifestyle concerns that will inevitably be impacted by their home purchase. That’s why it’s critical that luxury real estate professionals spend the necessary time and effort in curating their marketing campaigns so as to frame themselves as the trusted real estate advisor who can assist clients in all matters related to the luxury lifestyle they’re hoping to embrace.
Topics and Questions You’ll Uncover During this Episode:
- What is the next normal going to look like for luxury real estate?
- How will the recent rapid growth in wealth impact the luxury industry?
- Primary, secondary, emerging, and global markets in real estate
- How technology is impacting the way luxury homes are marketed
- The evolving role of the real estate professional and the true real estate advisor
Resources Mentioned within Episode: