October 2021 North America Luxury Market Report

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7. The median sold price in for luxury single-family homes, year to date in 2021, is approximately US$1.7 million, a 22% increase compared to 2020, and for luxury attached homes it is approximately US$1 million, a 12.8% increase compared to 2020. What does this tell us? In simple terms, the luxury real estate market remains extremely robust and luxury properties are still very much in high demand. If trends remain on track, then 2021 could report one of the strongest years on record for the number of sales as well as the median price point for luxury properties. However, despite these extraordinary numbers, the fall market is currently experiencing a slowing down, especially if we compare it to the activity of last spring’s market — not so much in the number of sales, but more that price increases have slowed, inventory levels increased, and there are fewer bidding wars. There is more a semblance of normality for all parties concerned in today’s market. Similarly, communities themselves are starting to return to a more normal way of life, as individuals have learned to live with the COVID-19 restrictions, coupled with more and more North Americans being vaccinated, which has helped reduce the frenzied buying activity as well as the mass exodus out of cities. In fact, the number of individuals returning to city life has increased exponentially month-over-month in 2021, as eased pandemic restrictions has renewed some confidence. The two largest property types that are trending this fall are city dwellings, condominiums in particular, and second home properties. Major cities such as New York, San Francisco, Chicago, Toronto, and to some extent Los Angeles (whose urban sprawl made it easier to relocate to the city’s outer limits) offered returning buyers a softer condominium market in which to negotiate. In many of the high-density metropolitan markets, inventory levels are still higher comparative to the numbers for the fall months of 2019. This allows buyers to be choosier, and price points,