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Facts About Affluent Homebuyers
- Percent of first-time and repeat buyers with household incomes of $200,000 or more: 12%
- Percent of first-time and repeat buyers who bought homes 3,501 sq ft or more: 8%
Source: 2022 Profile of Home Buyers and Sellers
The Luxury Property Market
How to Sell Luxury Real Estate in a Slow Market (RIS Media, Jun. 22, 2023)
“The luxury real estate market ebbs and flows. That’s simply the nature of the industry. Finding success as a luxury real estate professional means being able to ride the waves and always coming out on top. By putting these strategies into practice, you’ll be able to continue selling luxury real estate—even in a stagnant market. “
Mortgage Rates Drive All-Cash Purchases to Nine-Year High (Mansion Global, Jun. 7, 2023)
“A home buyer who can afford to pay in all cash is weighing two potential paths,” Redfin senior economist Sheharyar Bokhari said in the report. “They can use cash to pay for the home and avoid high monthly interest payments, or take out a loan and pay a high mortgage rate. In that case, they could use the money that would have gone toward an all-cash purchase to invest in other assets that offer bigger returns, which could partly cancel out their high mortgage rate.”
L.A.’s Luxury Real Estate Market Freezes, Putting “Mansion Tax” Funds in Limbo (The Los Angeles Times, May 5, 2023) E
“In the days before Los Angeles' "mansion tax" took effect, the luxury market moved at hyperspeed.
Prices were slashed, escrows were rushed and million-dollar deals were closed as panicked sellers offered exotic cars and lucrative bonuses to anyone willing to buy their properties by the end of March. It was a manic, desperate attempt at avoiding Measure ULA, a new transfer tax that levies a 4% charge on all residential and commercial real estate sales in the city above $5 million and a 5.5% charge on sales above $10 million. On April 1, everything froze.”
Five of the Strongest Luxury Housing Markets in the U.S. Right Now (Mansion Global, Apr. 30, 2023)
The luxury home market is still seeing signs of the COVID-19 shift to warmer climates, though the sunbelt is no longer the top market. According to the Emerging Housing Markets Index from The Wall Street Journal and realtor.com, with St. Louis, Missouri coming in at number one, shaking things up this year! Hilton Head/Bluffton/Beaufort, South Carolina came in at number two while Boulder, Colorado placed third. San Jose/Sunnyvale/Santa Clara, California came in fourth and Dallas/Fort Worth/Arlington, Texas came in fifth.
Marketing to the Millionaire: Profile, Preferences, and More
How to Sell Luxury Housing in a Slow Market (RIS Media, Jun. 22, 2023)
“The luxury real estate market ebbs and flows. That’s simply the nature of the industry. Finding success as a luxury real estate professional means being able to ride the waves and always coming out on top. By putting these strategies into practice, you’ll be able to continue selling luxury real estate—even in a stagnant market. From there, you’ll build trust and rapport with your clients, leading to more referrals that can help you further grow your business when the market inevitably picks back up again.”
Want to Sell Luxury Housing? Act Rich (Florida REALTORS®, Mar. 31, 2022)
“Luxury real estate agents should understand and adapt to their affluent clientele’s mindset in order to serve them better – and reap significant rewards. The first thing to understand: Affluent clients expect high-end marketing materials, a professional website, and other details that mirror their own lifestyle. Driving a nine-year-old Toyota Corolla to meet a multimillionaire at the airport, for example, might not project the correct image. Agents that spend more on these elements increase their earnings potential.”
4 Luxury Home-Staging Trends for 2023 (RISMedia, May 18, 2023)
Bring the outside in! Luxury buyers are looking for indoor/outdoor areas, as well as elements of nature inside of the home. In a trend that has been on the horizon for the past few years, the design-minded are moving past all-white kitchens. Scandinavian modern is still a classic, but luxury buyers are seeking coastal and bohemian once again. Additionally, more informal bar and lounge areas with room for the whole family (and guests!) are a must.
eBooks & Other Resources
The following eBooks and digital audiobooks are available to NAR members:
12 Secret Luxury Home Buyers Know (Audiobook, eBook)
The Luxury Strategy (Audiobook, eBook)
Luxury Brand Management (Audiobook, eBook)
Selling Luxury (Audiobook, eBook)
Selling Luxury Homes (Audiobook, eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
Selling Luxury Homes: Become the Preferred Real Estate and Trusted Advisor to High-end Clients in Your Market
(Windsor, CT: Tide-Mark Press, 2010)
The World of Luxury Real Estate (CreateSpace, 2007)
Rich Buyer, Rich Seller: The Real Estate Agents Guide to Marketing Luxury Homes (Institute for Luxury Home Marketing, 2003)
Trading Up: The New American Luxury (New York, NY: Portfolio, 2003)
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