The confluence of discerning buyers and a scarce availability of exceptional “unicorn properties” is expected to shape the luxury housing market for the remainder of 2024. Image: Coldwell Banker Global Luxury
There is a growing optimism among high-net-worth consumers and an uptick of new, sought-after property inventory bolstering a solid spring market in some good news for the global luxury real estate business.
A midyear survey of Coldwell Banker Global Luxury agents further corroborates these findings. These property specialists reported affluent buyers continue to seek out “have-it-all” properties, shifting their preferences toward finding their “forever” dream homes.
“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,” said Michael Altneu, vice president of Coldwell Banker Global Luxury, Madison, NJ, in a statement.
“A strong spring season combined with high confidence in the market from consumers makes me optimistic about what’s to come for luxury real estate in 2024,” he said. “It’s encouraging to see the rise in demand for forever homes and move-in ready residences. Despite challenges in the market, luxury agents can leverage these insights to finish the year strong.”
Coldwell Banker Real Estate LLC is part of brokerage giant Anywhere and one of the leading real estate franchises.
Future trend predictions defined by region: Coldwell Banker Global Luxury
Well-positioned listings benefit
The firm’s analysis of the first six months of 2024 reveals a modestly stronger luxury single-family home market compared to the same period in 2023, supported not only by agent feedback but also from Institute for Luxury Home Marketing data.
The market’s strong demand is evidenced by the close alignment between final sale prices and initial listing prices, underscoring the continued appeal of well-positioned properties, per the Coldwell Banker Global Luxury Mid-Year Report.
The Coldwell Banker Global Luxury program surveyed brokerage agents and worked with Altrata’s Wealth-X and the Institute for Luxury Home Marketing to provide insights into wealth, real estate, property investment, luxury spending preferences and emerging trends.
For the midyear report, the Institute for Luxury Home Marketing analyzed the data for the top 10 percent of 126 U.S. markets. Data contained is from Jan. 1, 2020 to June 30, 2024.
The report, which complements Coldwell Banker Global Luxury’s annual Trends Report, unearthed additional key findings.
Current luxury buyer motivations: Coldwell Banker Global Luxury
Continued demand for “have-it-all” properties
A critical factor driving the luxury real estate market is desirable inventory, where “have-it-all” properties offering tailored lifestyle experiences continue to be in the highest demand among discerning buyers, per the report.
In fact, more than 44 percent of Coldwell Banker Global Luxury agents said that demand persists for well-priced, impeccably presented high-end properties, particularly those that are “unicorns” such as move-in ready, new construction or with many amenities.
According to 23 percent of Coldwell Banker Global Luxury agents, constrained inventory continues to pose a significant challenge to sales.
The confluence of discerning buyers and a scarce availability of exceptional “unicorn properties” is expected to shape the luxury housing market for the remainder of 2024, the report stated.
Demand persists for well-priced, impeccably presented high-end properties, particularly those that are “unicorns” such as move-in ready, new construction or with many amenities. Image: Coldwell Banker Global Luxury
“Forever” dream homes sought
Approximately 22 percent of luxury real estate agents have observed a waning interest in trends that emerged during the pandemic, signaling a transition towards the concept of a “forever” home, according to the report.
Evolving market dynamics and shifts in remote work policies have led many affluent consumers to search for homes that align with their long-term aspirations.
Buyers currently want homes that offer the adaptability to grow and change alongside their 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, Coldwell Banker agents have found.
THE CONFIDENCE OF affluent consumers remains a pivotal element bolstering the steadfastness of the luxury real estate market heading into the second half of this year.
Nearly 70 percent of Coldwell Banker agents affirm their belief in the market’s strength for the current year.
That said, 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.
Notwithstanding the prevailing uncertainties for the remainder of the year, about 33 percent of Coldwell Banker Global Luxury agents are optimistic about a surge in real estate activity as the year progresses.
“There is a fundamental shift happening in the luxury real estate market as of late,” Jade Mills, Los Angeles-based president of Jade Mills Estates and International Ambassador of Coldwell Banker Global Luxury program, said in a statement.
“Properties that are priced correctly are achieving offers above asking price, often multiple offers, indicating a more balanced market,” she said.
“This report 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.”
Please click or tap here to download the 2024 Coldwell Banker Global Luxury Mid-Year Report