October 2021 North America Luxury Market Report

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market may see a slow down as we move further into the fall months, partly due to lack of inventory, but mainly because families will have purchased before the start of the school year. Second homeowners are probably now the largest demographic in the affluent marketplace, as a result of the pandemic. The affluent already had a propensity to own multiple homes but even with the diminishing impact of COVID-19, the demand for additional homes has not abated. The significant difference between second homes pre-pandemic and today’s market is that previously they were bought with the idea of a 2-3 week stay or perhaps a summer vacation property. Today, many second homes are interchangeable with the primary home and have been set up accordingly to allow their owners to change properties immediately and for the long term, if necessary. It is important to recognize that technology has changed almost every aspect of our lives and will continue to do so, and tech and data companies are responding by upgrading remote communication tools that prioritize security, as well as higher speed connectivity. This technology only reinforces the opportunity for people to work from home and live anywhere. The number of homes owned and the number of affluent owning two or more properties has accelerated during 2021, so whether you are looking at a ski resort or sunnier destination, do not be surprised by the low inventory levels. Finally, let’s not forget the combination of a second homeowner whose choice of purchase may not be for their own use, but rather as an investment. Increasing numbers of individuals, especially Gen-Xers and Millennials, are investing in condominiums in both metropolitan and resort markets as way to step into the market or grow their real estate portfolio. The art of selling and buying in this market needs a critical and analytical approach, understanding the realities and setting expectations accordingly will ensure that goals are achieved. For homeowners looking to buy or sell in today’s market, we recommend working with a Realtor who can capitalize on the preferences, trends, and demands in this dynamic and evolving environment.