Methodology

For The Report 2023 the Institute for Luxury Home Marketing analyzed the data for the top 10% for up to 125 U.S. markets. Top 10% is defined as homes with sold prices (or in terms of inventory, list prices), matching or exceeding the 90th percentile sold price for homes sold in 2019, 2020, 2021, and 2022 in the specified city. Once these percentiles are determined, these become the thresholds for measuring each month’s data.

Data is calculated monthly from various sources to attain the most accurate set of information pertaining to parameters, as seen throughout this report, such as closed sales, active listings, sold prices, sold-price-to-list-price percentages, days on market, and sales ratios. Data is then represented both monthly and yearly throughout the report, using medians, averages, totals, percentages, and ratios. However, unless otherwise specified, statistics typically presented in this report represent both the monthly median and the median of monthly medians of the respective data.

The median was calculated by arranging the data in sequential order and selecting the middle number of the set, whether that number be a price, volume, number, percentage, or ratio. To determine the median of the monthly median, monthly medians are totaled, and the same method applied as for the monthly figure. Unless otherwise specified, all statistics are based on property sold. Inventory statistics are based on property available at the end of each month. Average Monthly Inventory and Average Monthly Sold statistics are based on the average of monthly property totals for each month. Sales Ratio is based on the ratio of Average Monthly Sold to Average Monthly Inventory.

Market Status is an analysis of Sales Ratio and represents market speed and market type: Buyer’s = less than 15%; Balanced = 15% to less than 21%; Seller’s = 21% or greater. If greater than 100%, MLS data reported previous month’s sales exceeded remaining inventory pulled at the end of the month.

DATA FROM WEALTH-X

To provide data on the affluent with a net worth of $5 million+, Wealth-X, an Altrata company, uses their proprietary and recently updated Wealth and Investable Assets Model. This model produces statistically significant estimates for total private wealth and estimates the size of the population by level of wealth and investable assets for the world and each of the top 70 economies, which account for 98% of world GDP.

Wealth-X estimates total private wealth by using econometric techniques that incorporate a large number of national variables, such as stock market values, GDP, tax rates, income levels, and savings from sources such as the World Bank, International Monetary Fund, Organization for Economic Cooperation and Development, and national statistics authorities. Second, they estimate wealth distribution across each country’s population.

Wealth-X’s proprietary database of millions of records on the world’s wealthiest individuals enables them to construct wealth distribution patterns using real, rather than assumed, making the model more reliable. They then use the resulting Lorenz curves to distribute the net wealth of a country across its population.

Their model also estimates population, wealth, and investable assets for the world’s 200 major cities as ranked by nominal GDP in $. These cities are defined on the basis of urban agglomerations (UAs) and metropolitan (metro) areas, which include the built-up areas outside the administrative core, for example, New York includes New York City, Newark, and Jersey City. They focus on metro areas to ensure comparability because globally comparable city-level data is not available. They find that metro and urban areas are closer to self-contained entities compared with city administrative cores (city proper) because more residents are likely to work and spend within the metro/UA boundaries. They focus on metro areas to ensure comparability because globally comparable city-level data is not available.

DATA FROM COLDWELL BANKER GLOBAL LUXURY’S 2023 INTERNATIONAL SURVEY

Research conducted by Censuswide of 1,202 people with a household income of $1 million+ considering purchasing a luxury home. For the full methodology: blog.coldwellbanker. com/cbgl-2023-international-survey.