Leading Luxury Builders To Great ness
LUXURY MARKET REPORT
2021-2022
Leading Luxury Builders To Great ness
THIS IS YOUR
LUXURY MARKET REPORT
MAP OF LUXURY TOP RESIDENTIAL MARKETS Welcome to the Luxury Market Report, your guide to luxury real estate market data and trends for North America. Produced by CLB Network, this report provides an in-depth look at the top residential markets across the United States. Within the individual markets, you will find established luxury benchmark prices and a detailed survey of luxury active and sold properties designed to showcase current market status and recent trends. The national report illustrates a compilation of the top North American markets to review overall standards and trends. Copyright 2021 CLB Network, LLC. - Contact Us - 239-232-2123 and support@clbnetwork.com. Certified Luxury Builder Report is a Quarterly Report provided to Custom Builders and Remodelers to help understand economic trends that may impact a builder?s projects and businesses. The data and insights within this report are compiled by various sources, including https://public.tableau.com/<https://public.tableau.com/ local & national MLS, local tax records, building permits, Realtor.com, National Association of Realtors, National Association of Builders, Zillow.com and the CLB Analyst team. The data and insights are deemed reliable at a point in time and the data collection and insights have been derived as a best effort and is not guaranteed to be 100% accurate or insightful as the market and data is always changing.
TOP TRENDS TO EXPECT IN THE
LUXURY REAL ESTATE MARKET While many industriesand businessessuffered asa result of the pandemic and the necessity for people to adopt new waysof living, the market of luxury real estate, custom building, and remodelingflourished, and isset to continue growingthroughout 2022. The luxury lifestyle market isenjoyed by people who value time over money; they have achieved financial wealth so that now, lifestyle, family, friends, and experiencesare their priority. Many affluent buyersare seekingto upgrade the space within their luxuriousresidences, and focusingon greater outdoor livingspace, more amenitiesand lower population density. ThisCertified Luxury BuildersLuxury Market Report isdesigned to offer a USperspective through data. In thisreport we see the continuingtrend of how wealthy consumersare expected to continue to realign their property prioritiesto give their familiesa greater sense of privacy, safety, and security. Here are the top trendsto expect in the luxury real estate market in 2021-2022 with the supportingdata.
Choosing Suburban Space Over Cit y Cult ure There is an intense level of competition for single-family homes throughout the country, as buyers choosing to flee densely populated cities have driven home prices up across the U.S. New York, in particular, experienced a mass exodus in 2020 as it became the epicenter of Covid-19, and odds are, those residents won?t be returning in great numbers for some time to come. The Big Apple?s luxury market was only just bouncing back from multiple tax changes at both federal and state levels that had discouraged wealthy individuals from residing in-- or even investing in-- New York City. When the deadliest outbreak hit the five boroughs, high earners fled, seeking refuge everywhere from the city?s suburban areas to southern states, like Florida. Some luxury markets experienced a swift recovery by the fall of 2020, but not NYC ? the city?s luxury sector is only recently seeing any normalization to new contracts on homes asking over $4 million. Of the deals that are now taking place, there is a significant change in buyer priorities. Terraced apartments, townhouses and apartments with small rooms or alcoves that can be used as home-office spaces are all attracting unprecedented attention. Buyers are looking for ways to avoid sharing elevators and being cooped up indoors all day, as well as finding flexible spaces to work comfortably from home.
Priorit izing Qualit y Amenit ies Thanks to Covid-19, concerns surrounding a building?s air filtration systems and cleaning regimens have become commonplace. Amenity spaces ? already beginning to trend pre-pandemic ? have exploded in importance, too, with residents focused on homes that are not only luxurious but also feature larger outdoor areas, roof decks, co-working spaces, wellness services and health-focused amenities and programming. Everything from on-site spas to comprehensive sanitation servicing, high-tech air filtration and lighting, and even on-site medical care are fast becoming a standard expectation for luxury residential lifestyles. Luxury builders are responding to a need to equip homes with specialized wellness technology, promising to improve everything from energy levels to quality of sleep. These kinds of health care options are likely to continue expanding in the luxury real estate sector in the coming year to cater to those seeking to build new or remodel.
Luxury Lifest yle M arket s W ill Cont inue t o Boom For example, South Florida?s mansion market was inundated by the second half of 2020, as the pandemic drove interest from all over the country towards Florida. The migration trend is likely to continue throughout 2021-2022. Desirable markets and luxury builders are attracting buyers in masses as people flocked to the state in search of luxury lifestyle experiences, better locations, more land and the promise of year-round outdoor living. Not surprisingly, these incoming buyers were predominantly of the more affluent variety, made up of those who were able to work from home or who could otherwise afford to uproot their businesses and go where they felt most comfortable.
New Const ruct ion and Development Ramping Up High demand from homebuyers requires new builds, and homebuilders appear to be ready and willing to rise to the challenge. The U.S Census Bureau reported over 1.54 million housing starts for November 2020, a figure up 12.8% from the same month in 2019. Looking ahead in 2021-2022, it is expected that homebuilders will continue to ramp up the rate of new construction, with almost 1.64 million building permits issued in November 2020. Realtor.com predicts a further rise of 9% in housing starts compared with 2020 figures. Luxury real estate developers are certainly rethinking their designs to adapt to consumer preferences following the pandemic. Many have been re-developing ideas to include expanded outdoor areas, home office space and the addition of in-demand amenities such as smart home/ touchless technology and air filtration systems. The luxury real estate market is poised well for continued growth throughout 2021-2022, particularly those developments that have been reimagined to cater to the changing concerns of post-pandemic consumers. It is now more important than ever that developers adapt and position themselves to meet the evolving needs of potential buyers. The construction material cost forecast for 2021-2022 will continue to change until people--and the world-- get back to producing and shipping materials as before. The demand for new buildings and housing is still going strong. So materials are likely to continue to be more expensive, at least in the short term, unfortunately. Wood prices increased to new heights in 2020-2021, and the increases don't appear to be slowing down. From the start of April 2020 through April 2021, the price of lumber jumped 375%. With the pandemic and increased demand from DIY projects and the housing industry, the mills can't keep up. As of April 26th, 2021, the average lumber price was $1,372 per 1,000 board feet. The early signs for 2021-2022 are a bit rough when it comes to construction costs. In other words, things are likely to get worse for at least some of these supplies before they get better. It is wise to work with an honest company with deep ties to the material industry so that your construction costs make sense.
Const ruct ion M at erials Cost Forecast and W hat It M eans for New Building, Remodeling, and You The construction material cost forecast for 2021-2022 will continue to change until people, and the world gets back to producing and shipping materials like before. The demand for new buildings and housing is still going strong. So it's likely to be a tiny bit more expensive for at least the short term, unfortunately. However, it is not going to break your bank.
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LUXURY MARKET REVIEW - SINGLE FAMILY HOMES STATE
M ARKET NAM E
M EDIAN LIST PRICE
M EDIAN SOLD PRICE
INVENTORY
NEW LISTINGS
SOLD
DAYS ON M ARKET
M ARKET STATUS
CO
Vail
$6,695,000
$4,100,000
81
12
21
78
Seller's
UT
Park City
$5,647,500
$3,423,803
74
21
32
16
Seller's
CA
Los Angeles $5,299,500 Beach Cities
$3,805,000
348
106
88
48
Seller's
CA
Santa Barbara
$5,250,000
$3,127,500
121
43
54
33
Seller's
CA
Los Angeles City
$5,150,000
$3,535,000
745
223
111
48
Buyer's
DC
Washington D.C.
$5,100,000
$3,295,000
44
7
11
24
Seller's
CA
Silicon Valley
$5,000,000
$3,200,000
276
134
204
9
Seller's
HI
Maui
$4,595,000
$3,550,000
125
22
29
130
Seller's
CA
San Francisco
$4,500,000
$3,455,000
80
19
54
12
Seller's
CA
Marin County
$4,500,000
$3,412,500
61
10
20
12
Seller's
FL
Palm Beach Towns
$4,400,000
$2,937,500
123
33
40
107
Seller's
AZ
Paradise Valley
$4,247,500
$2,750,000
106
36
51
55
Seller's
CA
Central Coast
$4,200,000
$2,293,000
149
40
51
31
Seller's
CO
Summit County
$3,722,500
$1,800,000
14
4
8
35
Seller's
HI
Oahu
$3,697,500
$2,466,250
160
28
30
36
Balanced
LUXURY MARKET REVIEW - SINGLE FAMILY HOMES STATE
M ARKET NAM E
M EDIAN LIST PRICE
M EDIAN SOLD PRICE
INVENTORY
NEW LISTINGS
DAYS ON M ARKET
SOLD
M ARKET STATUS
MA
Greater Boston
$3,500,000
$2,802,000
89
38
21
44 Seller's
CA
Orange County
$3,397,000
$2,275,000
626
186
295
21 Seller's
CA
San Diego
$3,300,000
$1,855,050
419
141
289
14 Seller's
HI
Island of Hawaii
$3,199,500
$1,632,500
94
24
36
24 Seller's
CA
Los Angeles The Valley
$3,124,500
$2,040,000
282
116
123
22 Seller's
FL
Naples
$2,995,000
$1,837,500
232
69
124
64 Seller's
FL
Boca Raton/Delray Beach
$2,990,000
$2,015,000
239
64
77
85 Seller's
CA
Lake Tahoe
$2,988,000
$2,188,000
83
25
73
72 Seller's
FL
South Walton
$2,950,000
$2,070,000
113
28
52
26 Seller's
CA
Ventura County
$2,862,500
$1,697,500
128
57
62
25 Seller's
HI
Kauai
$2,850,000
$1,899,500
84
20
14
40 Balanced
VA
McLean & Vienna
$2,797,500
$1,750,000
130
35
41
19 Seller's
CA
Napa County
$2,785,000
$2,255,000
74
4
6
84 Buyer's
MD
Talbot County
$2,750,000
$1,650,000
37
5
9
65 Seller's
VA
Fairfax County
$2,588,000
$1,511,500
231
59
88
19 Seller's
LUXURY MARKET REVIEW - SINGLE FAMILY HOMES STATE
M ARKET NAM E
M EDIAN LIST PRICE
M EDIAN SOLD PRICE
INVENTORY
NEW LISTINGS
SOLD
DAYS M ARKET ON STATUS M ARKET
CA
Palm Springs/Palm Desert
$2,524,750
$1,543,500
180
53
131
54 Seller's
AZ
Scottsdale
$2,500,000
$1,655,000
311
97
192
54 Seller's
CA
East Bay
$2,469,000
$1,855,000
157
115
257
8 Seller's
CT
Coastal Connecticut
$2,350,000
$1,652,500
625
155
165
82 Seller's
NV
Reno
$2,349,900
$1,364,442
31
13
25
85 Seller's
CO
Boulder
$2,345,000
$1,725,000
126
28
50
57 Seller's
WA
Seattle
$2,200,000
$1,620,000
96
38
84
7 Seller's
VA
Arlington & Alexandria
$2,199,000
$1,650,000
53
18
23
14 Seller's
MD
Montgomery County
$2,148,500
$1,465,000
106
29
67
7 Seller's
WA
Greater Seattle
$2,000,000
$1,601,500
463
148
382
6 Seller's
FL
Jacksonville Beaches
$1,911,500
$1,200,000
56
19
42
28 Seller's
CA
San Luis Obispo County
$1,899,000
$1,465,000
84
21
41
N/A Seller's
NY
Nassau County
$1,895,000
$1,350,000
815
162
110
77 Buyer's
NY
Brooklyn
$1,750,000
$1,432,497
249
42
16
67 Buyer's
FL
Greater Fort Lauderdale
$1,749,000
$988,500
680
170
248
44 Seller's
FL
Orlando
$1,749,000
$1,400,000
261
55
83
70 Seller's
LUXURY MARKET REVIEW - SINGLE FAMILY HOMES M ARKET NAM E
M EDIAN LIST PRICE
M EDIAN SOLD PRICE
FL
Sarasota & Beaches
$1,734,000
FL
Lee County
CO
INVENTORY
NEW LISTINGS
$1,950,000
112
26
63
12 Seller's
$1,699,000
$1,390,000
245
49
100
59 Seller's
Douglas County
$1,675,000
$1,033,224
81
29
92
5 Seller's
NY
Suffolk County
$1,600,000
$1,190,000
916
154
168
69 Balanced
CO
Denver
$1,575,000
$990,000
260
120
339
6 Seller's
TX
Austin
$1,572,500
$875,000
130
69
251
5 Seller's
IL
Chicago
$1,549,000
$1,200,000
718
228
132
77 Balanced
CO
Durango
$1,512,500
$1,055,000
54
8
9
119 Balanced
FL
Miami
$1,499,000
$1,310,000
747
203
169
91 Seller's
FL
Coastal Pinellas Towns
$1,432,500
$1,490,000
30
9
11
64 Seller's
ID
Northern
$1,400,000
$967,901
93
38
60
57 Seller's
GA
Atlanta
$1,385,000
$952,500
607
219
188
30 Seller's
FL
Weston
$1,350,000
$939,000
47
15
23
47 Seller's
MD
Worcester County
$1,349,950
$985,000
34
12
6
CO
Colorado Springs
$1,280,000
$927,500
73
28
40
10 Seller's
UT
Salt Lake City
$1,270,000
$1,025,000
78
31
93
50 Seller's
NC
Charlotte
$1,250,000
$797,000
298
98
196
16 Seller's
STATE
DAYS ON M ARKET
SOLD
M ARKET STATUS
58 Balanced
LUXURY MARKET REVIEW - SINGLE FAMILY HOMES STATE
M ARKET NAM E
M EDIAN LIST PRICE
M EDIAN NEW INVENTORY SOLD PRICE LISTINGS
SOLD
DAYS ON M ARKET
M ARKET STATUS
TN
Nashville
$1,239,950
$1,020,000
154
55
107
5 Seller's
IL
Lake County
$1,199,950
$845,000
326
90
65
107 Balanced
CA
Placer County
$1,175,000
$928,418
111
24
62
9 Seller's
IL
DuPage County
$1,175,000
$918,500
297
89
62
95 Balanced
AZ
Phoenix
$1,150,000
$795,000
189
85
220
40 Seller's
TX
Dallas
$1,150,000
$844,500
282
87
199
20 Seller's
TX
Fort Worth
$1,108,750
$785,000
218
70
150
26 Seller's
MD
Anne Arundel County
$1,100,000
$982,500
125
33
58
15 Seller's
TX
The Woodlands & Spring
$1,100,000
$679,724
191
60
83
21 Seller's
NV
Las Vegas
$1,092,500
$755,000
442
167
360
28 Seller's
FL
Tampa
$975,000
$671,500
310
84
208
31 Seller's
CA
Sacramento
$963,500
$781,000
304
59
146
7 Seller's
IN
Hamilton County
$949,900
$694,900
57
17
60
40 Seller's
TX
San Antonio
$937,500
$750,000
212
44
84
71 Seller's
TX
Collin County
$918,083
$710,000
152
65
184
10 Seller's
VA
Richmond
$908,000
$735,000
137
38
43
6 Seller's
MI
Oakland County
$895,000
$640,000
441
162
155
24 Seller's
LUXURY MARKET REVIEW - SINGLE FAMILY HOMES STATE
M ARKET NAM E
M EDIAN LIST PRICE
M EDIAN SOLD PRICE
INVENTORY
NEW LISTINGS
DAYS ON M ARKET
SOLD
M ARKET STATUS
NJ
Ocean County
$895,000
$775,000
204
63
93
38 Seller's
MO
St. Louis
$875,000
$675,000
75
14
49
35 Seller's
MI
Livingston County
$869,000
$900,000
37
6
5
93 Buyer's
ID
Ada County
$851,900
$689,000
38
38
129
3 Seller's
AZ
Tucson
$850,000
$658,500
321
107
166
13 Seller's
TX
Houston
$850,000
$700,000
1380
358
284
36 Balanced
TX
Denton County
$850,000
$725,000
125
49
113
19 Seller's
MI
Washtenaw County
$849,950
$689,000
102
31
19
50 Balanced
NC
Raleigh-Durham
$849,000
$654,900
351
126
265
2 Seller's
IL
Will County
$793,025
$587,500
139
26
46
33 Seller's
MI
Wayne County
$750,000
$615,000
163
37
42
21 Seller's
CT
Central Connecticut
$699,900
$625,000
269
57
65
67 Seller's
MI
Monroe County
$685,250
$547,000
14
2
2
80 Buyer's
U.S.ECONOMIC OUTLOOK 2021/2022 REPORTING COURTESY OF NATIONAL ASSOCIATION OF REALTORS
2020
2020
2020
2020
2021
2021
2021
2021
2022
2022
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
U.S. Economy Annualized Growth Rate Real GDP
Hist ory
Forecast
Annual 2019
2020
Hist ory
2021
2022
Forecast
-5.0
-31.4
33.4
4.3
7.0
4.5
4.2
3.0
3.1
2.8
2.2
-3.5
4.5
3.2
Nonfarm Payroll Employment
.4
-40.0
23.3
5.1
2.1
3.0
3.0
3.0
2.5
2.2
1.4
-5.7
2.8
2.3
Consumer Prices
1.0
-3.1
4.7
2.4
3.8
3.7
3.0
3.1
3.2
3.2
1.8
1.3
2.7
3.2
Consumer Confidence
127
90
93
94
96
102
101
101
103
104
128
101
100
104
Percent Unemployment
3.8
13.1
8.8
6.8
6.2
6.0
5.9
5.8
5.7
5.7
3.7
8.1
6.0
5.7
Interest Rates, Percent Fed Funds Rate
1.3
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
2.2
0.4
0.1
0.1
3-Month T-Bill Rate
1.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.2
2.1
0.4
0.1
0.1
Prime Rate
4.4
3.2
3.2
3.2
3.2
3.2
3.2
3.2
3.2
3.2
5.3
3.2
3.2
3.2
10-Year Government Bond
1.4
0.7
0.6
0.9
1.3
1.6
1.7
1.8
1.9
2.0
2.1
0.9
1.6
2.1
30-Year Government Bond
1.9
1.4
1.4
1.6
2.1
2.4
2.6
2.8
2.9
3.0
2.6
1.6
2.5
3.1
Mortgage Rates, Percent 30-Year Fixed Rate
3.5
3.2
3.0
2.8
2.9
3.1
3.2
3.4
3.5
3.5
3.9
3.1
3.2
3.5
5/1-Year Hybrid Adjustable
3.2
3.2
3.0
2.9
2.8
2.9
2.9
3.0
3.1
3.1
3.6
3.1
2.9
3.1
Housing Indicat ors Thousands Existing Home Sales*
5487
4383
6103
6657
6303
6140
6200
6260
6180
6160
5340
5640
6220
6200
New Single-Family Sales
701
703
974
924
959
990
1020
1030
1040
1060
683
834
1000
1060
Housing Starts
1485
1079
1432
1584
1613
1570
1600
1620
1630
1660
1290
1381
1602
1680
Single-Family Units
968
766
1037
1227
1155
1200
1230
1240
1250
1270
888
991
1206
1280
Multifamily Units
517
313
395
357
458
370
370
380
380
390
402
390
396
400
Percent Change - Year Ago Existing Home Sales
5.2
-17.9
13.2
23.4
14.9
40.1
1.6
-6.0
-2.0
0.3
0.0
5.6
10.3
-0.3
New Single-Family Sales
5.0
5.9
39.6
29.9
36.8
40.8
4.7
11.5
8.4
7.1
10.5
20.4
19.9
6.0
Housing Starts
23.3
-14.1
11.2
10.6
8.6
45.5
11.7
2.3
1.1
5.7
3.2
7.1
16.0
4.9
Single-Family Units
12.6
-9.9
15.6
27.4
19.3
56.7
18.6
1.1
8.2
5.8
1.3
11.6
21.7
6.1
Multifamily Units
49.9
-23.0
1.3
-23.8
-11.4
18.2
-6.3
6.4
-17.0
5.4
7.4
-3.3
1.5
1.0
Median House Prices Thousandsof Dollars Existing Home Prices
272.5
288.2
309.2
311.0
314.5
323.0
331.0
327.0
326.0
334.0
271.9
296.7
323.9
334.0
New Home Prices
329.6
322.8
333.2
354.3
346.3
341.0
344.0
347.0
348.0
351.0
321.5
336.9
344.6
352.0
Percent Change -- Year Ago Existing Home Prices
7.7
4.1
11.6
14.2
15.4
12.1
7.1
5.1
3.7
3.4
4.9
9.1
9.2
3.1
New Home Prices
5.6
0.5
5.1
8.5
5.1
5.6
3.2
-2.1
0.5
2.9
-1.5
4.8
2.3
2.1
Quarterly figures are seasonally adjusted annual rates *Existing home sales of single-family homes and condo/coops
ABOUT CLB NETW ORK CLB measures our partnership success in Revenue, New Projects, and Net Profit. We want you to achieve your goal of putting a minimum of $1M in profits in the bank, achieving 10% net profit for the business, and building a valued asset. CLB takes a bright and innovative approach to offering easy-to-understand, customizable, and fractional solution options at a significant value compared to hiring employees or firms that do not understand your business, your best-fit clients, or the luxury home building and remodeling industry. CLB Network is backed by a team of seasoned professionals who explicitly understand what it takes to be a high performance luxury custom homes and remodeling business and how to deliver a 5-star experience to best-fit strategic partners. prospects, and clients. Our combined experience and solutions allows CLB to offer you and your business genuine peace of mind knowing that we are on your team and will help you achieve your goals years sooner than if you had to do it on your own.