What has shifted significantly from the pandemic boom days are the number of luxury properties selling. All indications are that 2023 will be a slower year for sales compared to 2021 and 2022. Until economic certainty returns, it is likely that some affluent buyers and sellers will take advantage of this calmer market to be more discerning about their future real estate goals. Buyers who are waiting for prices to dramatically fall will adjust to this new reality. Sellers, too, will need to realize that bidding wars and multiple offers over list price are fixtures of a market past. HNW individuals, who want to move for personal lifestyle reasons and aren’t locked in to extremely low interest rates, will continue to make moves if they find the right opportunity. They’ll continue to prioritize their happiness and enjoyment, looking for highly amenitized properties and secondary homes that offer them a range of experiences. Don’t be surprised by the growing number of wealthy individuals seeking homes in foreign countries. From the perspective of most luxury insiders, real estate experts, and Luxury Property Specialists we consulted for The Report, the key to navigating the current luxury housing market is to look
PERSPECTIVE
around the world are in the process of adapting to a market that’s finding a new equilibrium with new reference points. Interest rates are higher. Home selection is improving. List prices are down from late 2021 and early 2022. However, many markets are still posting median sold prices in certain price ranges near 2021’s all-time highs. High-demand property types are still selling at or near asking price.
Final
THE REPORT 2023 reveals that wealthy individuals
beyond the macro market indicators that so often get disseminated through the media and pay closer attention to micro market indicators. What’s happening in your local market at your price point? It’s also important to work with a trusted luxury real estate professional who has deep connections, knowledge, and understanding of local housing market conditions. Certified Luxury Property Specialists are some of the industry’s most educated and highly trained real estate professionals in the business today. As the market evolves this spring, you may be pleasantly surprised. If you’re a seller, you may find that your home is worth more than it was in 2022. If you’re a buyer, you may find that there is a better pool of homes to choose from in your price range than in 2022. The decision of whether to buy or sell will always be unique and personal to the individual. Perhaps that’s the only reference point that really matters. 105
