July 2019 U.S. Luxury Market Update
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Those who relied on predictions that 2019 would be a correction in the luxury housing market lost the bet. Check out this month’s report which tallies the stats from the first 6 months of the year to see how the trends played out.
“To date, the statistics for 2019 report – despite pessimist forecasts in the 4th quarter of 2018 – a strong consistency with no dramatic up or down swings in sales, inventory and pricing. Some markets certainly fared better than others, but in general terms, 2019’s stats show us there is no significant downturn. Although, this is not to say all things have remained equal, in fact the luxury market has seen some significant changes caused by new trends in purchasing power, preferences, and demand.”
2019 Predictions Proven Wrong. 2019 was predicted to be the year we would see a significant downturn in demand for luxury housing globally. There were also concerns that the negative impact of tax changes and government regulations, especially in Canadian and foreign markets, could cause a further downturn in the market. It just didn’t happen. Although there is certainly global uncertainty, other lifestyle events have proven to be the real catalyst. Buyers are still moving to smaller and smarter lock-and-go housing, and they are relocating to avoid high taxes and weather. The full report can be viewed at this link: Luxury Market Report.
The Lock & Leave Shift Continues. “Luxury condominiums have proven to be one of the strongest sectors in today’s luxury market. Early predictions of a steady demand in most markets, with downtown cores showing the strongest growth, have proven to be correct. The combination of young professionals looking for live-work-play lifestyles, global entrepreneurs using wealth from their businesses, and baby boomers leveraging equity from their single-family residences to purchase luxurious full amenity condos are the main drivers in this market.”
Move-in Ready is Critical. As we in the business full time have seen demonstrated for several years, home buyers have no desire to purchase a home requiring renovations. Today’s buyers look for turnkey, move-in ready properties with all of the amenities and none of the extra work.
Luxury Buyer Pool Continues to Grow. According to Wealth-X, the number of ultra-wealthy individuals is still increasing at a rate of 1.3 percent per year. The luxury home market is expected to hit $920 billion by year end 2025, up from $550 billion just two years ago. Make sure to scroll through the report for a full city by city comparison and much more.
If you would like a print version of any of my housing market reports, or if I can help you buy or sell anywhere in North America, please let me know below, email or text!
About the Author: Denise van den Bossche has been a licensed Agent and homeowner for over 35 years in the Metro Phoenix Valley. To contact Denise, please call 602.980.0737 or email: Denise@AZMultipleListingService.com. Her husband Patrick is President of Realty Executives International, so if you need help buying or selling homes anywhere in the U.S. or Canada, please call, email or text!
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