The pandemic has changed the way people look at their homes and how they use their space. Buyers are looking for more indoor and outdoor space, more amenities, and less populated areas, which is exactly what a luxury home offers.
Sales of luxury homes saw a 60.7% increase during the last few months of 2020 and show no signs of slowing down this year. Areas like Florida’s West Palm Beach even had a 116% surge in luxury home sales towards the end of 2020.
According to Redfin, luxury home sales grew by 26% at the start of 2021. The low interest rates, strong stock market, and a surge in savings also gave buyers the confidence to purchase these high-end properties.
If you plan on buying or selling a luxury house, these are the luxury real estate trends that you can expect this 2021:
Trading the city for the suburbs
While living in the city has its perks, nothing compares to the space, amenities, and quality of life in the suburbs. Many buyers are now seeing the advantages of life away from the city. The ability and desirability to work from home, even as the country opens from the pandemic, has made out of city living much more viable.
Rising luxury home prices
With the demand for luxury properties on the rise, the price of luxury homes for sale are following suit. The lack of inventory is also a major factor. HousingWire reports that luxury properties on the market continue to get multiple offers, even with a sales price as big as $3 million or more. The median sales price for a luxury home in the United States increased by 25.8%, according to Redfin.
Millennials entering the luxury real estate market
When it comes to buying homes in general, millennials make up the largest home buying demographic in the United States. Millennial purchasing power is not only boosted by them being the main demographic in the workforce, but by them acquiring inheritances from parents or grandparents. So, even if they are just entering the real estate market, millennials aren’t scared to make a luxury home their first purchase. They prefer to skip the starter home and go straight to their dream home.
For millennials, finding a home and neighborhood that fits their ideal lifestyle is a priority. They have preferences in what they look for in a home, especially with regard to technology and the environment. These are the main factors that will lead to millennials shaping the luxury real estate market.
Demand for home offices
Working from home is one of the biggest changes brought about by the pandemic. Since people are now spending more time inside their homes, the main factor that they look for now is space and comfort. And a luxury home offers just that.
Having a designated work space is one of the main features that buyers look at when it comes to shopping for luxury homes. Luxury home buyers are now in search for the ultimate work from home setup that includes ample space and plenty of natural light. Additional rooms for their children to study in are also a plus.
Aside from home offices, luxury home buyers are also after homes that give you the space to exercise. While gyms are on the way to fully reopening, most people plan on continuing their at-home workouts. Whether it’s a home gym or a yoga room, buyers want to be able to burn calories from the comfort of their home.
More outdoor space and privacy
Luxury buyers are also starting to reevaluate the size of their outdoor space and the proximity of their homes to their neighbors. And with remote working as the new norm, the additional space and privacy will do wonders for their work-from-home environment. Luxury buyers are looking for areas that are less crowded.
Turning a second home into an alternative full-time home
Another trend emerging in the luxury home market is homeowners temporarily swapping their primary home for their second home. Since second homes are typically located in vacation or retirement destinations, these properties offer more indoor and outdoor space and more opportunities for an outdoor adventure. While choosing to spend more time at their alternate home, owners can rent out their primary home.
Are you planning to buy a luxury home in West Palm Beach, Florida? The Telchin Group would be more than happy to help you find the perfect property. Give us a call today at 561.301.0249 or send an email to Eric(at)TheTelchinGroup(dotted)com.