The luxury real estate buying boom that began in 2020 escalated in 2021. Insatiable demand depleted inventory across the U.S. and put upward pressure on prices. Driving the real estate surge was a combination of factors: 1) shifting consumer values caused by the Covid-19 pandemic, 2) historic wealth growth due to cryptocurrency gains, soaring stock markets, rising house prices, and increased savings, and 3) the idea of home became paramount. As people searched for safe places to put their wealth and re-envisioned homes as multi-functional spaces for work, play, and sanctuary, they sought out bigger and better living environments. Many luxury real estate professionals will look back on 2021 and be able to say that it was their best year yet.

The question now is: will 2022 build on this unprecedented momentum, or will there be a deceleration of demand as some experts are predicting? There are a number of unknowns that will dictate the future market direction, but here are five key trends to watch:

1. LOW INVENTORY

Low inventory continues to constrict the top 10% of the market. In September 2021, there were 36% more luxury homes sold than new inventory entering the market. One month later, that figure ballooned to 55%. Coldwell Banker Global Luxury® Property Specialists from across the country have told me that they do not see inventory levels improving any time soon. “The biggest story of the year is that our inventory is down 44% year-to-date in the Aspen area and 72% in Snowmass Village,” commented Carrie Wells, the No. 1 agent in the Coldwell Banker network.

2. NEW LUXURY PRICE THRESHOLDS

Declining inventory levels, combined with a lack of desirable properties, have pushed prices up across all luxury price points.

Median luxury sold prices* as of the end of October 2021, compared to the full year of 2020, has risen 23% for single-family homes and 14% for attached properties, according to recent stats compiled by the Institute for Luxury Home Marketing, the partner who helped us prepare our 2021 “A Look at Wealth” report released this fall.

One of the price segments with significant growth was the $1 to $5 million range. In the first 10 months of 2021, there was a 69.2% increase in the number of single-family sold properties in that price category and 65.3% for attached properties, compared to the full year of 2019. Based on current trends, sales for single-family homes priced $1 to $5 million will rise YOY by 64.6% compared to 2020 and 112.6% compared to 2019, while attached properties will rise by 81% compared to 2020 and 96.6% compared to 2019.

As a result, luxury price thresholds rose across the U.S. In Los Angeles, the entry-level luxury home price hovered around $2 million for many years, but is now closer to $3 million, according to Joyce Rey of Coldwell Banker Realty in Beverly Hills. It’s not just happening in major U.S. cities either. Even in a small resort market like Hilton Head Island, S.C., the barrier to luxury entry has increased nearly 40% since 2019, from about $550,000 to $779,000 – “while at the same time experiencing a more than 60% decrease in the inventory of homes,” noted Thomas M. Kersey with Coldwell Banker Access Realty.

3. HIGH DEMAND FOR TURNKEY PROPERTIES AND NEW CONSTRUCTION 

Turnkey properties are still sparking bidding wars and fetching the highest prices. Jade Mills, also in Beverly Hills, said earlier this year: “People have a lot on their plate, and adding a remodel to a move during such complicated times gives added attraction to a move-in condition house. Clients want done houses.” In Miami Beach, Danny Hertzberg of Coldwell Banker’s Jills-Zeder Group estimates that 90% of his affluent buyers want new construction, compared to 70% of them, pre-pandemic. Recent supply constraints in the construction industry – from labor shortages to materials like lumber, concrete, and paint – have only amplified demand for turnkey and newly built properties.

This is also the case in Manhattan, where new luxury construction appears to be leading the city’s recovery. A joint report by Marketproof and UrbanDigs recently found that Manhattan's new development deals in October 2021 rose 122% to 224 contracts from last year’s pandemic depressed 101. Month-over-month, the number of deals increased 28% from September’s 175 contracts. Median list prices also increased 71% year-over-year in October and 52% from September, buoyed in part by 200 East 83rd Street, a Robert A.M. Stern-designed luxury development by Naftali Group and Rockefeller Group, which reported 35 contracts ranging from $3.6 to $11.5 million. As Gerard Splendore, a broker for Coldwell Banker Warburg Realty noted: “It is not entirely surprising that most post-pandemic buyers prefer pristine and immaculate spaces that are previously unoccupied as opposed to older residences with wear and tear. After all, who wouldn’t want to move into an entirely new home, with the most modern accouterments and facilities at their disposal?”

4. THE MIGRATIONS CONTINUE

The Great American Migration was still in effect for much of 2021, except partly in reverse. Whereas in 2020 people were fleeing densely packed cities and pandemic hotspots to small-town hidden gems, suburbs, and popular second-home destinations, people returned to cities in 2021. Another group of buyers was also making moves to small to midsized cities with more affordable home prices and reasonable commuting distances to major employment centers.

5. THE RISE OF CO-PRIMARY OWNERSHIP

Happening concurrently with migrations, as remote work became the norm, was the rise of co-primary ownership. Some affluent buyers did not fully migrate to other locations; rather, they simply swapped a secondary residence for a primary residence or chose to own two primary properties in different locations and split their time based on lifestyle preferences.

LOOKING AHEAD

What will 2022 bring? Inflation, mortgage rates, and construction supply constraints are all economic factors to watch. Our Luxury Property Specialists are also keeping an eye on what wealthy international buyers will do now that U.S. travel restrictions are lifted. Markets like Miami are especially keeping close tabs on this development, per the Jills Zeder Group. “Miami has doubled the number of sales in the $5+ million range year-over-year,” they recently shared. “As international buyers make a slow comeback to the Miami market and start competing with domestic buyers, we anticipate an even tighter inventory.” And, with low inventory levels and turnkey properties commanding a premium, will we see some wealthy buyers pivoting to adjacent “aspirational” markets or adjusting their expectations and purchasing properties that need a little work?

All of these elements will be in play in 2022. The Coldwell Banker Global Luxury team will analyze it all in our forthcoming “The Report,” due out in February 2022.  I’ll be posting this then, but in the meantime, please contact me to discuss any of your real estate needs or questions.  I’m here to help!

The post Toni Itkin Reveals The Five Luxury Real Estate Trends to Watch in 2022 appeared first on Haute Residence by Haute Living.

Photo Credit: Shutterstock

Texas has long been a state of resilience. Although Real Estate has always been essential, the industry recently set the tone of economic strength and sustainment during an unprecedented financial time. Despite a drop in the total number of homes sold during the month of May 2020 compared to May 2019, the total number of homes sold in the first six months of this year is still 3% higher than the total number at this point last year, according to the San Antonio Board of Realtors’ Multiple Listing Service (MLS). The COVID-19 Pandemic certainly brought about an abundance of uncertainty. However, agents saw many homeowners gain clarity on how they live in their homes. For many homeowners, this was the first time they were forced to stay home for long periods of time. Due to this, many analyzed where they were living and how that affected their quality of life. Homeowners began to think about what kind of home they actually desire and as a result, began house hunting. These changes have manifested in different ways, but there are also many commonalities among them. Here are some of the most common things we have seen buyers searching for lately:

Lockdowns and quarantine have caused many younger adults to move back in with their parents. Many have found this to be a difficult adjustment over the last few months. As a result, many people are placing a high value on guest houses for their adult children to utilize for extended stays.

Community recreation facilities are becoming a thing of the past. This is not only due to the closure of many community amenities during COVID-19, but also to the fact that people are much more health-conscious now than before. Therefore, amenities like swimming pools and workout areas are especially highly desired features of private houses right now.

Home offices have also been rather popular in recent years as working from home became more commonplace, but this popularity has morphed into a near necessity for home buyers. In fact, many buyers are now seeking out dual home offices so that they and their spouse can both effectively work from home.

These are personal stories we have heard from our clients at Phyllis Browning Company, and those sentiments are the driving force behind our current area market statistics. In the San Antonio Area, the total number of homes sold in June is up 28% from May 2020 and up 5% from June 2019. The selling price is also up 6% in June from June 2019 according to MLS data. At Phyllis Browning Company, we are advocates of safe selling and are equipped to assist buyers and sellers in their homeownership goals. We take steps every day to make sure we provide The Very Best service to our clients. We are optimistic about the market for the coming months, and we are excited to continue helping clients achieve their real estate dreams!

The post Jennifer Shemwell On Current Real Estate Market Trends At Phyllis Browning Company appeared first on Haute Residence by Haute Living.

Photo Credit: Linda Cotter

Haute Residence: How has the luxury real estate market performed so far in 2020 for Southern California’s South Bay marketplace?  

Cindy Shearin: While inventory has remained low, properties are selling relatively quickly, by demand. Our beach cities remain top of the list of most desired places to live in the USA, especially Manhattan Beach, which was recently named the No. 1 city in which to live by 24/7 Wall Street. While Covid-19 has caused a slow down in how we do things, especially for showing properties, we have still serviced our clients virtually and safely as best we can. Here in the South Bay, when families' or individual’s property needs change, they tend to simply move to a different section of the city vs. moving away and completely relocating. Also, we are seeing an influx of international and bi-coastal buyers. Often, West Coast kids will opt to go to college on the East Coast for a new experience and typically return. Likewise, East Coast students will embark on the West Coast for college and then make SoCal their new home. There are also diverse types of ownership in the South Bay; single-family homes, townhomes; two-on-a-lot homes and even a condotel that offers partial ownership on The Strand in Hermosa Beach.  For 2020, we have made sales in all of these categories.  

Photo Credit: Linda Cotter

HR: What are buyers looking for in their homes in your market in 2020?

CS: The individual beach cities have multiple sections: The Sand Section, The Hill Section, The Tree Section, The Manhattan Village (the only gated community in Manhattan Beach), Hermosa Sand Section, Hermosa Hills, Hermosa Valley, Riviera Village and so-on, all relatable to the different cities in the South Bay. Therefore, what buyers are looking for varies greatly per section. For example, for the newer homes in the Sand Section, buyers all want elevators as most properties are three and sometimes four levels. With the aging baby-boomer population, elevators are more important and convenient as well. Due to our near-perfect weather every day, most buyers are desirous of an outdoor kitchen as we have the luxury of outdoor dining almost all year long. Whether it’s an outdoor kitchen or living/dining area, everyone wants to bring the indoors out and vice-versa, especially in these times when we are home so much. This is an aspect of architecture that our Design & Development department at The Shearin Group always strives to implement for our client's construction needs.

Photo Credit: Linda Cotter

HR: You are also known as an accomplished Interior Designer, are you working on a particular property you’d like to highlight for 2020?

CS: Yes, I am currently working on several homes that are under construction and at various stages of completion. If one is interested in new construction in the South Bay, it is best to contact me directly for additional information. Our design and development team specializes in luxury custom homes, from modern organic designs to coastal plantation styles, which are both current and fit the needs of the South Bay lifestyle. We focus on indoor/outdoor living spaces, and bonus rooms like second master suites and beach rooms when appropriate. Upscale amenities and unique architectural elements, accented with dramatic custom-designed lighting and fixtures are just a little of what we do at The Shearin Group. Every home we build has its own character and distinctive style that is geared toward the desirable Southern California lifestyle.

Photo Credit: Linda Cotter

HR: Are there any new restaurants or other spots in your market you’ve been loving lately?

CS: Several new restaurants are opening all over the South Bay, and Manhattan Beach has some of the best. We love SLAY Steak + Fish House, which took the space of the beloved Darren's in downtown Manhattan Beach. It’s a lovely upscale surf-and-turf eatery with dramatic interiors, a mix of French Brasserie meets Newport Nautical. David, the owner, is warm and welcoming and spends time greeting his guests in the dining room.

Photo Credit: Linda Cotter

HR: It’s time for summer. As the state opens back up gradually, what are some of the fun activities one can enjoy in your market?

CS: Year-round, there are always fun and unique events going on throughout the South Bay. Though many activities are uncertain as of this writing, we believe many will get back on schedule soon, like the Kite Flying Contest in Redondo Beach, a variety of outdoor markets, concerts at the beach, concerts in the park, 5K/10K runs, hundreds of opportunities for charity benefits, and of course great beach camps and surf camps for the kids to enjoy. But our mainstays like surfing and swimming in the gorgeous Pacific, and biking or walking along The Strand or in the sand are still enjoyed by locals every day.

 Photo Credit: Linda Cotter

The post First Quarter Market Performance In The South Bay From Cindy Shearin appeared first on Haute Residence by Haute Living.

Photo credit: Craig Dennis

Urban growth has been the biggest challenge many major markets around the world have faced in the last few years.  Miami's skyline was completely revolutionized with the addition of award-winning sky homes as a result of the demand for more vertical living. These sky oasis feature state-of-the-art amenities and services for the ultimate luxury living and homebuyers are quickly buying up real estate throughout the city's most prominent high-rise developments. But -- there's a new trend hitting the 305's real estate market: self-sufficient, livable yachts a.k.a. floating homes. This year, during the highly-anticipated Miami Yacht Show, top real estate industry leaders and aficionados were able to tour the first-ever Arkup sustainable floating home that seamlessly blends all the features of a yacht with the form and function of a home.

Photo credit: Craig Dennis

The jaw-dropping $5.4 million home is situated atop 4,350 sq. ft. comfortable living space with 4 bedrooms, 4.5 bathrooms. The floating home is completely self-sufficient and sustainable with the ability to withstand extreme weather conditions. The meticulously crafted home also features a stunning interior fully furnished by the famed Brazilian brand, Artefacto.

Photo credit: Craig Dennis

With an expansive, 775 sq. ft. living room that features breathtaking oceanfront views, the trend-setting home offers an ultra-luxurious living experience transcending all limits by creating a living atmosphere that perfectly blends indoor and outdoor living together.

The post The First-Ever Arkup Sustainable Floating Home Debuts In Miami During The Miami Yacht Show appeared first on Haute Residence by Haute Living.

1000M (Photo Credit: Credit to Millerhare)

WELLNESS IS THE NEW LUXURY

Major cities like New York, Singapore, Miami, London and Los Angeles are home to some of the most stunning and state-of-the-art residence towers in the world. As residents around the world embark on their new year resolutions, health and wellness have become the most highly requested amenity features in luxury skyscrapers. Coined as the ‘new luxury,’ developers are taking wellness to the next level by creating like-minded health enthusiast living communities and incorporating immersive wellness amenities and spaces into the stunning sky homes.

VERTICAL LIVING IS AT AN ALL-TIME HIGH DEMAND

Sky homes are at an all-time high. While single homes are still being in demand across the world, more homebuyers are opting to buy homes in luxurious residence towers across the globe. The shift towards vertical living is a result of two things: major cities are running out of prime luxury land to build on horizontally and sky homes are now offering the latest in cutting-edge technologies, sophisticated design and finishes, resort-like amenities and exceptional service.

THE INFUSION OF HIGH TECHNOLOGY

There is an increase in amenities that seamlessly mix the virtual world and the real world for tech-savvy residents. Golf simulators, virtual meditation and gaming are some of the top most requested high-tech amenities. High-tech homes with the latest in cutting-edge technology and security systems, while not a new concept in the market, are continuing to be requested by homebuyers in every major market. In the era of smartphones and the digital world at our fingertips, developers are beginning to come up with new innovative ideas of implementing the latest in smart-home technologies in today’s horizontal and vertical homes.

The post 3 Real Estate Market Trends for 2019 appeared first on Haute Residence by Haute Living.

Where do you foresee the residential real estate market heading in 2019? 

The forecast for Rancho Santa Fe and North County San Diego is still positive as we head into 2019. In fact, San Diego’s housing market is ranked 5th hottest in the nation.  US housing markets might be slightly shifting to a buyer's market in 2019, it is the natural equilibrium.   Yet with the economy so strong, sellers know they can stubbornly holding out for big prices, particularly in San Diego. 

How long do you foresee before South and North Cal start seeing a demand for more vertical living? 

Downtown San Diego is booming with residential and commercial development which includes a healthy 'sky homes' market. No longer is it the once sleepy navy town boasting the best climate in the country. The weather remains beautiful year-round while the city has reinvented itself as a dynamic place to live, work and play. Around 41% of downtown’s population are Millennials and 21% Gen X. San Diego is not a city of concrete canyons. Planned into downtown’s growth are multiple parks, open spaces and pocket parks welcoming residents, workers and visitors.

There’s been an overall dip in prices for high-end homes throughout the country, has it been similar for you in your market?

The market has cooled at the upper end. Although, we are seeing the movement of properties with larger square footage, 8000+ which we haven't experienced to this degree in several years. 

Heading into the new year, there’s been talk about an upcoming dip in the market, can you share with us insight into reasons why this may occur?

With mortgage rates on the rise, prices blowing past their previous peaks and inventory slowly creeping upward while rents are flatlining we may see a minor hiccup in the market for the 1st quarter of 2019.  San Diego enjoys a market that is not typical to most US housing markets, our 'Sunshine Tax' drives buyers into the county.

What is the most common trend you see amongst your buyers in regards to what properties they are interested in? 

Despite being the nation’s eighth biggest metro area, San Diego is really made up of sprawling suburban areas that are all very different, makes house hunt struggle very real. The common trend for buyers is identifying the area that fits their lifestyle needs.

Do you think there is an oversaturated market right now? If so, is there a shift from a seller's market to a buyers market?

Oversaturation is not an issue in San Diego. We simply don't have enough inventory.  The shift from seller's market to buyer's market occurred in early August 2018 due to economic/election concerns and normal time of year slow down.  

What is the most beneficial piece of advice you would give to other brokers?

Stay positive and remember we are in a service business. Our job is to provide exceptional service and advice to create long-term relationships with our clients.

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