Demand for “have-it-all” properties and the “forever dream home” will shape this spring’s luxury housing market, according to the Coldwell Banker Global Luxury 2024 Mid-Year Trend Report, which forecasts growing optimism among affluent consumers and an influx of desirable inventory.
The bi-annual report reveals a resilient luxury real estate market in the first six months of 2024 that is slightly outpacing performance from the equivalent period in 2023.
In a complementary survey of Coldwell Banker Global Luxury Property Specialists, nearly 70% of respondents expressed confidence in the health of the 2024 luxury market.
Sales of $1 million-plus single-family properties increased by 2.66% in the first six months of 2024, according to the Institute for Luxury Home Marketing.
“It’s gratifying to see many of the trends that we identified in January holding true and new ones taking shape halfway through the year,” Michael Althea, VP of Coldwell Banker Luxury, said. “Despite challenges in the market, luxury agents can leverage these insights [from the mid-year report] to finish the year strong.”
Those trends include buyers’ pursuit of “forever dream homes” which, according to agents, offer adaptability to grow and change alongside homeowners’ evolving lifestyles.
“Transitions in life stages are increasingly becoming a primary motivator for property sales, leading to a preference for homes that can accommodate a family’s needs through various life phases,” 22% of luxury real estate agents agreed in the survey.
There also is a rising demand for “impeccably presented, move-in ready or new construction homes with attractive pricing,” concurred 44% of the specialists on their survey. They call those properties “unicorns,” because finding them is a challenge.
In fact, proliferation of desirable inventory is a critical factor driving the luxury real estate market.
As evidence, “a notable uptick in sales was observed from January to May, coinciding with the introduction of new listings,” according to the report. “Conversely, the subsequent contraction of inventory in June was mirrored by a diminished sales volume.
A slight increase in luxury home inventory is expected, 59.3% of responding specialists agreed. But 23% said constrained inventory continues to pose a significant challenge to sales.
About half of participating luxury property specialists said they anticipate stable pricing through the remainder of the year. Some 34% of specialists say they foresee a shift by sellers away from aspirational pricing strategies.
“Properties that are priced correctly are achieving offers above asking price, often multiple offers, indicating a more balanced market,” Jade Mills, President of Jade Mills Estates and International Ambassador of the Coldwell Banker Global Luxury program said.
This Trend Report, she added, “underlines the importance of effective pricing and marketing strategies amidst challenging conditions while creating favorite opportunities for both luxury buyers and sellers now and in the months ahead.”
Among specialists, 32.8% were anticipating more activity after the U.S. elections.
“A segment of high net-worth individuals is adopting a cautious stance, preferring to await a more favorable market and political climate prior to engaging in property transactions,” according to the Report.
Considering the prevailing uncertainties for the remainder of the year, about 33% of the global luxury property specialists surveyed are optimistic about a surge in real estate activity as the year progresses.
The full Mid-Year Report is available at coldwellbankerluxury.com.
