What’s Driving the Heightened Buyer Demand for High-End Homes?

Dated: June 16 2022

Views: 44

Luxury Homes Are in High Demand

Luxury Homes Are in High Demand | MyKCM

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 Marketingthere’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.

What’s Driving the Heightened Buyer Demand for High-End Homes?

The same 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.”

So, if you’re looking to make changes to your real estate portfolio or are looking to sell your current house, it may be a great time to list and benefit from the high demand for luxury homes today.

Bottom Line

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.

Blog author image

Dave Matthews

In 2011, I began my real estate career in the western suburbs of Boston after having worked for many years in public accounting in the Boston area. I believe that honesty and integrity create long....

Latest Blog Posts

Understanding the Value of a Starter Home Versus a Forever Home

Photo Credit: Dillon Kydd via UnsplashUnderstanding the Value of a Starter Home Versus a Forever HomeNorfolk home buyers face a major decision as they approach the property market for the first.

Read More

How Buying or Selling a Home Benefits the Economy and Your Community

How Buying or Selling a Home Benefits the Economy and Your CommunityIf you’re thinking of buying or selling a home, chances are you’re focusing on the many

Read More

Home Price Deceleration Doesn’t Mean Home Price Depreciation

Home Price Deceleration Doesn’t Mean Home Price DepreciationExperts in the real estate industry use a number of terms when they talk about what's happening with home prices. And some of those

Read More

Why Achieving the Dream of Homeownership Can Be More Difficult for Some Americans

Why Achieving the Dream of Homeownership Can Be More Difficult for Some AmericansToday we take time to honor and recognize the past and present experiences of Black Americans. When it comes to real

Read More