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Luxury Transitions Markets Attracting High-End Buyers
The interior of a castle in Loule Hills, Portugal, with sea views.
156%
In Sarasota, Florida, prices for luxury homes increased 156% from 2019 to 2022, according to data from Realtor.com.
27%
Prices for luxury homes jumped
27% in Tucson between the fourth quarter of 2021 and the first quarter of 2022.
while perennial favorites for luxury buyers such
as Nantucket, Massachusetts; Aspen, Colorado; and Palm Beach, Florida, continue to thrive, lesser-expected locales like Sarasota, Las Vegas, Austin, Tucson, and Portugal are seeing home values spike and increases in luxury level listings.
“Now more than ever people want to live life to the fullest. So destinations that offer lifestyle rich amenities have become particularly sought after, whether that’s ski, beach, equestrian or however they choose to spend their time,” said Christy Budnick, CEO of Berkshire Hathaway HomeServices. Favorable income and property taxes help, too.
For example, in the Sarasota, Florida, market, the top metro area for luxury-price increases, prices for luxury homes increased 156% from 2019 to 2022, according to data from Realtor.com.
In Lisbon, prices were up 14% in the luxury market in 2021 over 2020, and Michael Vincent, CEO of Berkshire Hathaway HomeServices Portugal Property in Vilamoura
Luxury Growth Across Top 10 U.S. Metros
Realtor.com looked at luxury price growth and corresponding metros among the 95th percentile of properties with a $1 million threshold during the second quarter of 2022.
95TH PERCENTILE PRICE CHANGE 95TH PERCENTILE PRICE - DAYS ON MARKET CHANGE ACTIVE US$1M+ LISTINGS CHANGE NEW US$1M+ LISTINGS CHANGE 95TH PERCENTILE PRICE 2022 Q2 DAYS ON MARKET 2022 Q2
Virginia Beach-Norfolk-Newport News, VA-NC 13.64% -62.86% 58.72% 122.66% $1,250,000 39
Boise City, ID
3.92% -44.83% 33.59% 139.15% $1,299,000 48
Tampa-St. Petersburg-Clearwater, FL
3.51% -44.29% 59.18% 114.83% $1,625,000 39
Houston-The Woodlands-Sugar Land, TX
Dallas-Fort Worth-Arlington, TX
Nationwide
3.51% -44.87% 23.26% 61.47% $1,475,000 43
3.19% -43.75% 111.06% 158.02% $1,650,000 36
-3.41% -43.76% 50.76% 107.36% $1,835,008 56
Source: Realtor.com
Marina, anticipates luxury prices will rise 25% in 2022 compared to 2021. The supply of luxury homes was 15% lower in April 2022 compared to that same time last year. Low inventory and high demand are pushing prices up, particularly in the Algarve, where prices have increased by 20% over the past six months, Mr. Vincent said.
“Lisbon has always been seen as one of the most appealing areas for luxury buyers from all over the world,” Mr. Vincent said. “A penthouse apartment in Lisbon can easily sell for €7 million. There are also pockets of extremely high-end resorts in the Algarve on Portugal’s Southern coast, such as Quinta do Lago and Vale do Lobo, where luxurious villas start at €2 million to €3 million and can go to €20 million.”
In Lisbon, luxury buyers are primarily Spanish, North Americans, British, Brazilian and French, Mr. Vincent said. In the Algarve, luxury buyers are primarily British, Dutch, French, German and Spanish.
Hot markets for high-net-worth buyers
California luxury buyers are the primary drivers of the markets in Texas, Arizona and Nevada, along with other domestic and some foreign buyers. In Austin, often called “Silicon Hills” for its tech-based economy, more luxury homes are being built at higher prices, said Rick Ellis, COO and general manager of Berkshire Hathaway HomeServices Texas Realty in Austin. Prices of luxury properties in Austin rose 104% between the first quarter of 2019 and the first quarter of 2022, according to Realtor.com.
“Downtown is the newest and most expensive place to live in Austin,” Mr. Ellis said. “There’s a crane on almost every corner building new high-rise condos at a median $818 per square foot.”
Luxury buyers in Austin, who often work for tech companies, tend to pay cash, Mr. Ellis said.
“About 25% of available homes are priced over $1 million,” Mr. Ellis said. “We’re not Los Angeles, San Francisco or
