The Luxury Migration
There has been an uptick in luxury market activity from the recent pandemic
More buyers are moving from dense urban areas to remote areas than ever before
Luxury buyers are demanding amenities like finished outdoor spaces and fast, reliable internet service - luxury homes without these may not sell
This summer just keeps getting hotter and so does this market. The luxury home typically will sit on the market for 20% longer than median-priced homes, however, with recent restrictions being lifted, the luxury market is gaining more attention with buyers feeling more confident, businesses going back to normal, and sellers being more motivated for change.
Cincinnati, for example, has seen luxury listings leaving the market at a rapid pace. My thoughts are that more northern residents in places like New York, for example, are leaving the state and are looking for adventures elsewhere. With such a scarce supply of inventory nationally, I am seeing that homes are moving so quickly. Boise, Idaho, has seen an activity increase in its luxury market as well. My speculation is that because of strict restrictions and the high cost of living in places like California, buyers come to Idaho wanting a bigger home with more outdoor space. The pandemic and housing shortages have affected buyers, forcing them to make accelerated decisions and throw major cash at prospective homes.
COVID-19 has made people more conscious of their space, and made people who are used to more densely populated areas feel compelled to move somewhere completely different, making sure their home has the full package. When I say the “full package", it's going to be different now than what it was prior to COVID-19. As many people are working from home, buyers want to have a functional space for a home office. Having a relaxing outdoor space is now essentially mandatory, with more luxury buyers wanting a waterfront property or an in-ground pool, making sure they have that place where they can come home and just get away. Consistent, fast internet connectivity has been a huge desire as well within the luxury market, again because so many people are working from home, as well as conducting their shopping online. These days, it’s possible for a deal in the luxury market to fall apart if the internet connection isn’t up to the standard. These are just a few different things that can help bring more value and desirability to your home.
Ethan Adams is a real estate professional specializing in the luxury real estate market. He lives in Louisville, KY and is here to help you understand the market, value your home, as well as guide you through buying or listing your next property. Contact him at firstname.lastname@example.org.