Why Luxury Real Estate is Trending This Year

As per Roger Pettingell in the past few years, the real estate market has been hot, and this year has been no different. But the luxury market has been heating up even more. Coldwell Banker reports that sales of single-family homes and attached properties in the first 10 months of 2021 have increased by 69.2%, 65.3%, and 66.9%, respectively. A year ago, a luxury home in Los Angeles was priced at over $2 million. Now, it is closer to $5 million.

Today, savvy agent understands the needs of their clients. In addition, they understand the community and the lifestyle that affluent buyers desire. Additionally, they must understand macroeconomics, the flow of wealth, and the preferences of affluent home buyers. This will help them speak about other markets with knowledge. The luxury real estate market has a long history of success and the future is bright for the industry.

While prices are rising now, it’s not as easy to predict which way they’ll go. Some experts believe that luxury real estate prices will stay high through 2022. This is due to a lack of inventory, high prices, and inflated demand for larger homes. Meanwhile, soaring wealth and cryptocurrency gains are also contributing factors to the upsurge in luxury home prices. People’s perceptions of the home have changed, as they sought a safe place to invest their wealth.

Roger Pettingell explains staging is a popular way to increase a home’s sale potential. Staging allows buyers to envision what a space could look like. One trend in luxury real estate listings is the white-box trend, in which rooms are stripped of furniture and decor to create a “blank slate” for buyers to envision how to use the space. However, in these instances, the buyer must be willing to wait until the desired features are available.

Large yards have been on the decline until 2020. Previously, buyers did not want the extra expense and hassle of landscaping. But now, people are looking for larger spaces to grow, relocate, and find quiet time away from their families. Today, multi-generational living spaces and luxury home theaters are among the top features of luxury homes. The millennial generation will make up 70% of the luxury market by 2025 and contribute 130% of the growth in the luxury industry.

There are many reasons for this. Increasingly, wealthy Americans are relocating to other states or regions to pursue career opportunities or to enjoy the lifestyle of the community. In addition to this, global consumers are expanding their real estate footprint, and some states and cities cater to the tastes and preferences of the wealthy. But the question remains, where to buy? Several factors are driving the growth of luxury real estate. If you are among the lucky ones, this year is the right time to invest in luxury real estate.

Roger Pettingell describes Los Angeles remains the epicenter of West Coast cool and the darling of the entertainment industry. Its housing market is strong and consistent, and the city’s desirable features will continue to draw buyers from around the world. Unless the market starts to dry up in the next few years, Los Angeles should remain a popular destination for buyers and investors alike. While it may be slow in the short-term, it will likely remain a top spot in 2022.

Los Angeles is another city where luxury real estate is rising in value. Many high-income residents are renting instead of purchasing luxury homes. While San Jose and San Francisco have higher prices for luxury homes, the city’s high-end rental market is experiencing a boom. While Los Angeles is a highly expensive city, the demand for luxury rental homes is high. Moreover, many of these properties are surrounded by sprawling golf courses and other attractions.

As the California housing market stabilizes in 2022, home values in affluent areas will remain robust. This trend will likely continue in Santa Barbara as the supply of homes is limited, and the demand for luxury homes is also higher. Higher mortgage rates will continue to pressure buyers and push prices even higher. The low supply and high demand in the area will make Santa Barbara a hot commodity well into the next decade.