Q3 Luxury Market Trends 2023

LUXURY MARKET TRENDS

HAPPY FALL!

The luxury market has seen its final flurry of activity at the end of September and now, just like the weather, things will continue the cooling trend as the year comes to a close. Unsold inventory has grown in several markets within the luxury price ranges as the days on market have trended higher.

The month of October will have the greatest selection of luxury properties available until next March. Looking ahead, the number of listings will dwindle as fewer people choose to list their homes and the “winter cleanup” begins as some sellers take their homes off the market over the holidays, then reposition to bring them back on the market after the first of the year.

We’re here to help you find the right home to move forward in life. Contact your John L. Scott Luxury Specialist to review market conditions and trends that will help you make an informed decision.

J. Lennox Scott Chairman and CEO John L. Scott Real Estate

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Exceptional Homes is John L. Scott’s luxury real estate brand. Together with our luxury broker associates, our global partners at Luxury Portfolio International, and our support staff, we strive to provide concierge-level service by putting clients first.

We can ensure you that we are here for you and your family. The real estate market is fast-paced and ever changing, but what hasn’t changed, is our commitment to exceed your expectations when you are ready to buy or sell your home.

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4,600 Offices Worldwide Total Inventory $58 BILLION

INDUSTRY-LEADING SALES.

Our invitation-only network was responsible for $353 billion in annual home sales volume among the top 500 U.S. real estate firms in 2022.

Volume shown in billions of dollars. For informational purposes only. In compiling this report, LeadingRE relies on third party sources. The information set forth in the chart above is sourced from the 2023 RealTrends 500, showcasing production for calendar year 2022, accessible via realtrends com. Neither LeadingRE nor its member companies are responsible for the accuracy of third-party data presented herein.

Average Property $2.6 MILLION

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JOHN L. SCOTT LUXURY SPECIALISTS SCHOLARS OF THE MARKET

Curious about luxury trends in your neighborhood? See what some of our real estate specialists had to say about the luxury market in their area.

One third of homes in Bellingham are pending within the first week on the market and two thirds are pending within 30 days. We don’t have the same level of frenzy and bidding wars as we did in 2021-2022, but turnkey homes in the hot neighborhoods are still fetching multiple offers and selling above list price. House prices are roughly 20% less than comparable homes in the Seattle metro so we have experienced an influx of remote workers.

We saw a similar number of sales of $1M homes sell in Q3 in 2023 (#33) compared to 2022 (#36.) There are still many to choose from, and it is often taking longer to receive an acceptable offer. However, I have had two recent experiences where my buyers were up against multiple offers, including cash with escalation clauses. Overall, the list-to-sales price ratio remains high. Qualified luxury buyers DO have much to choose from, but it has become clear in this market that not all $1M properties are the same. We recently closed a beautiful home at $2.5M where we had multiple qualified buyers trying to get into escrow. On the flip side, one of our buyers with $3M to spend has so far been unable to find something that checks all of their boxes.

NICOLE TINGVALL Bellingham

SCOTT LEWIS Ashland

BRYCE LEE AND KIMBER LEE

Q3 in the Pierce & South King County luxury market experienced a scarcity of available properties, necessitating careful staging and prepping of homes prior to marketing to maximize their appeal in a competitive market. As we enter fall, luxury home sellers will benefit from a seller’s market with medium intensity; however, the challenge remains with limited inventory. Luxury buyers are increasingly seeking upgraded outdoor amenities, prioritizing privacy, and space, while energy-efficient features and smart home technology continue to be sought-after trends in the luxury market.

BRIAN AND KIM GOLIK

In Q3, the market was a normal to slower market, with homes either moving quickly or staying on the market for a while. We had the good fortune of moving several properties quickly. We feel this was due to correctly pricing it for the current market demands. Currently, the biggest challenge is interest rates. The stock market has pulled back and has lowered the amount of all cash offers, unless you have a Private Wealth Management Portfolio Loan you will be paying a 7%+ loan rate. Conversely, it is a great time to buy with price declines. Sellers are motivated due to “life changes” and spending a lot of time preparing their houses for sale. Moving in to Q4, sellers need to take low offers seriously. The market will be a rocky road. That doesn’t mean accepting a low offer but responding with data to back up their counter-offer pricing. If a buyer has visited 3 or 4 times, they have interest. Buyers are sitting back waiting to see what is going to happen. Instead of waiting for the buyer to write an offer, the seller is writing an offer to the buyer, and as a broker, we need to start the conversation.

Bellevue Main

Lake Tapps

PUGET SOUND

THIRD QUARTER HIGHLIGHTS

In the third quarter of 2023, luxury sales activity in Seattle, West Bellevue and Mercer Island has continued the trend that began last year. As active inventory has slowly increased in the upper price ranges, buyers have been able to take more time as days on market have trended upwards as well.

OFFERED AT $6,350,000 | JOHNLSCOTT.COM/59253

WEST BELLEVUE

Over the last three months in West Bellevue, we’ve seen more closed sales of luxury homes compared with the same period in 2022. The positive news for buyers is that there is also higher active inventory remaining before we enter the winter cleanup months.

MERCER ISLAND

Mercer Island remains competitive and in spite of market conditions and interest rates, buyers need to be prepared to move quickly. The active inventory of unsold homes available for buyers is lower than we saw at this time one year ago and many will be waiting in the wings when the spring market kicks off next year.

OFFERED AT $4,250,000 | JOHNLSCOTT.COM/74253

OFFERED AT $1,899,950 | JOHNLSCOTT.COM/23836

SOUTH KING COUNTY

IN Q3, WE SAW A 11.6% INCREASE IN THE AVERAGE SALES PRICE FOR SOUTH KING COUNTY

KITSAP COUNTY

OVERALL, THE AVERAGE PRICE PER SQUARE FOOT INCREASED 3.5% IN KITSAP COUNTY

BAINBRIDGE ISLAND

The demand for the island lifestyle on Bainbridge Island remains strong yet buyers have seen some relief as active inventory has increased. New listings will inevitably slow in the coming months as we close out the year with fewer people putting their homes on the market during the holiday season, which can be a great time to list a property with reduced competition.

PENDING | JOHNLSCOTT.COM/68885

SNOHOMISH COUNTY

Q3 SAW A 8.7% INCREASE IN DAYS ON MARKET IN SNOHOMISH COUNTY

LUXURY WATERFRONT

LAKE WASHINGTON

LAKE SAMMAMISH

KING COUNTY

FEATURED LUXURY LISTINGS

HAYDEN, ID | $2,050,000 | JOHNLSCOTT.COM/39363

1469 E WOODSTONE DR, HAYDEN, ID 83835

Nestled within a secure gated community near scenic Hayden Lake, this retreat offers a true haven of comfort and luxury. Inside, the main floor offers two primary suites, convenient for multi-generational living. The home has been meticulously updated, including a gourmet kitchen and primary bathroom that reflect modern tastes and functionality. The allure of this home extends beyond its walls to the great outdoors. A swimmable water feature, complete with a chlorination system, and a sunken gas fire pit invites you to relax while surrounded by nature’s abundant wildlife. Embrace the tranquil lake life, with the Hayden Lake Country Club and the Avondale golf course within golf cart distance. This home is not just a residence, it’s a lifestyle.

MATTAWA, WA | $2,300,000 | JOHNLSCOTT.COM/22385

510 LAKESIDE WAY SW, MATTAWA, WA 99349

This rich Tuscan inspired rambler sits upon the banks of the Columbia River with grand views of both the river & area mountains. Located within the community of Desert Aire, this home is an outdoor oasis with a stamped concrete back patio, in-ground pool, hot tub and shuffleboard court. A home built for entertaining with large spaces, including a quaint courtyard with built in wood fireplace and backyard with space for all. Between the high-end finishes and the amazing layout, you will enjoy the life of luxury. 18-hole golf course, paved trails along the river, boat launch and regional airport all within minutes from your front door.

KERRY JO HORN

253.691.7817

KerryJoHorn@johnlscott.com

EASTERN WASHINGTON & IDAHO

COEUR D’ALENE, IDAHO

THE AVERAGE SALES PRICE IN COEUR D’ALENE DECREASED 5.0%

SPOKANE COUNTY

9.2%

OREGON & SOUTHWEST WASHINGTON

THIRD QUARTER HIGHLIGHTS

In the third quarter of 2023, luxury sales activity in the Portland Metro area has cooled relative to the same period in 2022 and higher days on market has been a relief to buyers who can take their time to view each new listing. The area has a good amount of inventory compared to similar metro areas, which translates to great opportunities for luxury buyers.

OFFERED AT $2,590,000 | JOHNLSCOTT.COM/66983

In Lake Oswego and West Linn, luxury inventory continues to slowly build because of the intensity adjustment in the market combined with higher interest rates. Great selection is available to buyers as we approach the quiet winter months.

data is for single family residences over $1M in Clackamas, Multnomah, Washington and Columbia Counties. Some John L. Scott offices are independently owned and operated.

PORTLAND METRO

LAKE OSWEGO

Available luxury inventory in Bend has doubled compared with the same period in 2022 offering greater selection for buyers interested in this lifestyle destination.

Bend is a lifestyle destination and appeals to high-net-worth individuals from a variety of backgrounds who are looking to purchase a primary residence or second home in the city known for its fantastic outdoor recreation opportunities.

6.3% IN

CLOSET CASE ELEVATE THE EXPERIENCE OF EVERY DAY BY TURNING THE CLOSET INTO A LAVISH, BESPOKE DRESSING ROOM

By Lisa Klein

Imagine a boutique experience lounging on a plush settee with an espresso or glass of Champagne before perusing sumptuous racks of beautiful clothing, choosing the perfect bag and shoes from a towering, backlit wall and leisurely adding the final touches to your hair in a space styled just for you. But all of this is happening in your own home — in your closet.

Closets do not have to be haphazardly crammed with garments, shoes hanging lifelessly on the back of the door, a place where you grab your tie from — if you can find the one you want — and run. Thoughtfully designed dressing rooms can be relaxing, personalized places to start and end the day.

“An organized, well-thought-out, beautiful closet becomes a retreat for the homeowner to escape to and enjoy each time they enter it,” says Melissa Adair, senior project manager for the Florida-based Marc-Michaels Interior Design. “It’s refreshing to have everything nicely displayed and organized and makes it a pleasure to get ready for the day.”

Open the door

Getting dressed is, or at least should be, an experience. Many spend a lot of time and money collecting curated closets full of designer duds, accessories and high-wattage jewels, and these all need a proper home and a special place for their owner to appreciate them while getting ready.

“We do spend so much time in our bathrooms and our closets, and normally we forget to actually enjoy that time,” says Doniphan Moore, principal of Doniphan Moore Interiors in Dallas, Texas. “By really putting the effort in, I think you create the experience that you have.”

The place where one gets dressed is incredibly personal, and should both reflect the individual and make them feel good, setting the mood for each day.

“You want to feel special; you want to feel confident; you want to feel happy,” says Julie Dodson, founder and creative director of the Houston, Texas-based Dodson Interiors.

“[A closet] should be a space that just puts a smile on your face,” she says. “You’ve got all your favorite things around you.”

A customized closet is both a reflection of an individual’s own impeccable style and a space that needs to remain functional, with an optimized layout and a spot for everything.

Mr. Moore recommends thinking about the design-standard “kitchen triangle” of refrigerator, sink and stove, but for getting dressed. The “closet triangle” could be clothing storage, a place to sit while putting on shoes and a full-length mirror for checking out the final ensemble. And leaving enough space in between is key.

“By having things a little more spread out and less crammed, I think it allows the person who’s living with those things to appreciate those things more, by showing everything so beautifully,” Mr. Moore advises. “Presentation is everything right?”

Dress it up

Not everything needs to be seen, however, and using a mix of both open and closed storage keeps things clean and organized. Rows and rows of clothes on hangers not only look messy and monotonous, but take the focus off of the good stuff. Hiding some items in drawers and behind doors while displaying special pieces lets the best shine.

“I like to display eye-catching items — the beautiful bags and shoes, maybe a gorgeous dress — and hide the more day-to-day items,” Ms. Adair says.

There are also collectors who want to have their prized possessions on view, from walls of handbags and shoes to glass-top cases for jewelry and watches. This makes for both a happy place and one that is visually stunning.

Functional pieces can also add to the aesthetic. While a closet may only be seen by the household it serves, and usually by only one or two members, that does not mean the furniture in it need be boring. In fact, the opposite is true. Choosing beautiful chests, dressers, tables and vanities levels-up the experience.

Seating is another important addition, from the practical bench to posh sofas and chairs for lounging — and sharing the space with friends and family.

Another must-have, the floor-length mirror, can also be a focal point for gathering with loved ones. Ms. Dodson likes to install a three-way version, whenever space allows, for viewing all angles.

“I put one in a client’s closet years ago,” she says. “She had three daughters, and they would all get dressed in there and check themselves out in that mirror. Again, it makes you feel special. It’s like your own little space.”

A dry bar or coffee nook adds to the social ambiance, or also becomes a perfect getaway spot for some alone time.

A CLOSET THIS MAJOR calls for décor that is considered just as much as that of the living room — and can be as outré as one wants since it lives in a hidden-away place. Some choose to lean ultrafeminine or masculine, while others opt for a decadent mix of both in a shared space.

Either way, layering luxe materials such as lacquered wood, marble, brass, glass, silk carpeting, velvet upholstery and crystal light fixtures ensures an all-out glam factor, and focusing lighting on displayed pieces makes them pop. A closet is also the perfect place to showcase personal photographs and sentimental objects, Ms. Adair advises — a reminder that it is a place all to oneself.

“These rooms are such little jewel box moments,” Ms. Dodson says. “Creating those places and little moments that allow you to escape life for a minute — that closet is your space.”

Text reproduced with permission from Luxury Portfolio International and Luxury Portfolio magazine. © Luxury Portfolio International. All rights reserved.

Photo credit: istock.com