This time last year, real estate markets around the world were up against overwhelming demand, limited supply, and soaring home prices. Looking toward 2023, the landscape has changed dramatically, as luxury homebuyers are thinking long-term, per a new report from experts at Luxury Portfolio International (LPI). The market for luxury real estate remains strong after another record year of sales across the country, and with supply, demand, and home prices all showing signs of normalizing, it appears that the year ahead will be an active one.
Luxury Portfolio International, the world’s leading luxury residential real estate network, just released its 2023 State of Luxury Real Estate report, which features new data detailing what is to come for the high-end housing market in the year ahead. This consumer-focused study combines insights from the world’s high-income and high-asset individuals, focusing its scope of research on the top 5% of income-earning households in 28 global markets across six continents.
Overall, interested homebuyers remain bullish, seeking properties for future financial gains and current community spoils, while adapting to the current market and moving past post-pandemic shifts in the market. The great news for the luxury residential real estate market is that purchasing prime property continues to be a solid investment even in fluctuating financial times.
Top Takeaways from LPI’s 2023 State of Luxury Real Estate Report
- Luxury housing inventory shortage continues for the third consecutive year and as inventories continue to dwindle, especially in the luxury sector, the shortfall in the number of available homes impacts choice, and in turn, impacts total sales as consumers wait for the ‘right’ home to purchase. Although improving slightly, 2023 is still expected to have fewer sellers than buyers globally, continuing to feed demand for new markets and new developments.
- Sands are shifting back to major cities as most all types of luxury homebuyers plan to purchase a property in a city center in 2023, speaking to the city’s continued investment value.
- Luxury home buyers are thinking long term, as 66% of buyers seeking a property where they can age in place with multi-generational living spaces and room for at-home healthcare. Along with this, sustainability, wellness, and family-oriented space are all top priorities for these buyers.
- Luxury homebuyers are ready to entertain and be out-and-about again, as the report revealed that luxury buyers are resoundingly back in the swing of things when it comes to at-home entertainment, with a noticeable uptick in the attendance of cocktail parties and large scale social events.
- Luxury homebuyers are aware of a possible, impending recession as well as the myriad of ongoing global issues, but they are mostly unbothered by it. They are instead adapting to the circumstances, and becoming more effective homebuyers as they learn to prioritize preferences based on facts and figures about the quality of a home equally with their feelings and emotions towards buying or selling their home.
Looking to make your move? Contact our local real estate experts at Harry Norman, REALTORS® at any time for a complimentary consultation on buying or selling your home.