The unique challenges of 2020 have upended and transformed many aspects of the real estate market. The luxury homes sector is no different. Coldwell Banker Global Luxury’s recent “New Affluent Trailblazers” report indicates that luxury buyers are turning to resort towns, suburbs, and smaller communities to find homes as telecommuting becomes the norm.
Since 2008, the U.S. wealthy population has increased in size at a near-constant pace. Today, the number of millionaires has grown to approximately 26 million, according to Wealth Engine. As the wealthy population has grown, it has also diversified. The source of their wealth, the different industries that they work in, and other unique factors continue to shape the characteristics of today’s affluent, their lifestyle decisions, and their luxury purchase decisions.
When we look at the most current wealth research, a picture of who the trailblazers are begins to emerge. Based on these sources, three archetypes have been identified that are having a major impact on the luxury real estate landscape in 2020: explorers, new suburbanites and resorters. Resorters are those who are flocking to world-class vacation destinations, such as Longboat Key. Whether they golf, play tennis, or enjoy wine, resorters often choose their locations based on their life passions. They may either be permanently relocating to their favorite vacation destination or are converting response to the pandemic.
Resorters Top Interests:
One look at the extremely low inventory of homes available on Longboat Key confirms the high popularity of our area and the brisk buyer activity we have been experiencing all year. For Resorters, properties that offer proximity to nature (in this case, the Gulf of Mexico), security and safety are in high demand, as are properties that offer amenities, like pools, wellness suites and home gyms, flex spaces and rec rooms. Longboat Key has always been known for offering top-shelf outdoor recreation, access to hobbies or passions, a sense of tranquility and a sophisticated lifestyle with shopping and restaurants. It’s a perfect storm.
When the supply of houses for sale is as low as it is today, it’s much harder for buyers to find homes to purchase. This means competition among purchasers rises, and more bidding wars take place, making it essential for buyers to submit very attractive offers. As this happens, prices rise, and sellers are in the best position to negotiate deals that meet their ideal terms.
Will our extremely low inventory crisis continue? Once a vaccine is generally available, and we return to our normal lives, it is probable that more sellers will be ready to list their property for sale, and that would stabilize market pricing. The window of ‘advantage seller’ is open now — we don’t’ know how long this window will be open. It is impossible to time any market, but for the foreseeable future, listing your home for sale right now is a winning strategy.
Read the full Coldwell Banker Global Luxury “New Affluent Trailblazers” report here.
