If you’re thinking about selling a luxury home, research shows it may be time to put that “for sale” sign in your front yard.
Data from a YouGov Affluent Perspective 2017 Global Study, sourced specifically for the Luxury Portfolio Global Luxury Real Estate report, analyzed spending and saving trends from more than 5,000 of the top 10 percent of consumers worldwide and found that luxury buyers currently outnumber sellers by a nearly 3:2 margin. The trend is expected to continue for the next 3 years. Twenty-five percent of high-net-worth individuals expect to buy a luxury property while only 17 percent of owners are planning to sell one. “The population of wealthy consumers continues to grow, and their interest in purchasing real estate also increased,” Paul Boomsma, president of Luxury Portfolio International, says about the report’s findings. As demand increases and inventory decreases, the market is becoming increasingly favorable to sellers.
The study found that the U.S. luxury real estate market remains strong. “The high-end market in the U.S. is currently quite healthy as it is driven by growth in sales and stronger-than-average home sale prices across the nation. However, historic levels of inventory shortages in some markets are beginning to take their toll, even on the high-end. With fewer luxury homes on the market, prices are possibly being artificially driven up,” the report states.
“Globally, the number of people that have significant net worth is growing at a considerable rate, and that is a very positive indicator for the luxury real estate market,” says Stephanie Anton, executive vice president of Luxury Portfolio International. “Affluent consumers see real estate as a solid investment, they have the money to spend, and they know that a home they love—whether it’s a primary home for their family or a vacation or second home—will contribute to their quality of life.”
The Middle East and Asia-Pacific are currently expected to see the most interest from buyers; the latter has seen a 21 percent growth in the $10 million-plus net-worth population since 2015.