Luxury Homes Are in High Demand
Substantial Increase in Luxury Purchasers and Sales Since Pandemic
Luxury Market Report Dramatic Increase in Luxury Home Purchases
As people realize their needs are changing, some are turning to luxury housing to find their dream home. Investopedia helps define what pushes a home into this category. In a recent article, they point out that a luxury home isn’t only defined by its price. Location is also an important factor. It could be a condo at a desirable city address, a spacious home on the water, or one with access to luxury activities like arts and entertainment, high-end shopping and dining, and more. The home itself will also boast some of the finest features available.
According to the Luxury Market Report from the Institute for Luxury Home Marketing, there’s been a substantial increase in how many buyers are purchasing luxury homes over the past two years. It says:
“. . . 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 own a luxury home, it could be a great time to list your house today while demand is so high. But first, let’s understand where the demand is coming from.
Local South Florida Statistics – May Luxury Homes Report
Boca Raton/Delray Beach – Median List – $3,500,000 / Median Sold – $1,958,000
Inventory – 227, New Listings – 105, Solds – 105, Days on Market – 99 Seller’s Market
Palm Beach Towns – Median List – $4,700,000 / Median Sold – $2,700,000
Inventory – 151, New Listings – 61, Solds – 41, Days on Market – 26 Seller’s Market
Click here for a copy of the Current Luxury Market Report – North America, May 2022
with Luxury Home Trends plus statistics on major luxury markets across the country check out your local market!
What’s Driving the Heightened Buyer Demand for High-End Homes?
The Luxury Home Report says more people have reached a certain net-worth threshold, and that’s contributing to the increased interest in 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.”
Great Time to Buy a Luxury Home
Inventory of Luxury Homes is still low, but there are still opportunities coming onto the market all the time.
Click here to view more info and links on the
East area neighborhoods on the intracoastal and island were substantially built in the 1960’s and 1970’s. There have been many homes that were renovated or torn down and built with new homes. There are even more lots that have recently been torn down and rebuilt with luxury and ultra luxury homes in the $10 million +/- range.
Some areas like the Treasure Coast (north of Palm Beach County) still have beautiful vacant parcels that are currently under construction for new oceanfront homes and townhomes.
There are several MLS boards in the area and the website IDX is limited on fields that can be included so the searches probably do not include all available listings.
Contact me or call 1-561-866-2927 for more detailed information and up-to-date searches
If you own a luxury home and want to know how strong demand is in your area, let’s connect so you can capitalize on current market conditions while buyer demand for upscale homes is so high.