LUXURY MARKET REPORT
APRIL 2022
www.PrincessPan.com
THIS IS YOUR
LUXURY MARKET REPORT
MAP OF LUXURY RESIDENTIAL MARKETS
W
elcome to the Luxury Market Report, your guide to luxury real estate market data and trends for North America. Produced monthly by The Institute for Luxury Home Marketing, this report
provides an in-depth look at the top residential markets across the United States and Canada. Within the individual markets, you will find established luxury benchmark prices and 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 © 2022 Institute for Luxury Home Marketing | www.luxuryhomemarketing.com | 214.485.3000 The Luxury Market Report is a monthly analysis provided by The Institute for Luxury Home Marketing. Luxury benchmark prices are determined by The Institute. This active and sold data has been provided by REAL Marketing, who has compiled the data through various sources, including local MLS boards, local tax records and Realtor.com. Data is deemed reliable to the best of our knowledge, but is not guaranteed.
– LUXURY REPORT EXPLAINED – The Institute for Luxury Home Marketing has analyzed a number of metrics — including sales prices, sales volumes, number of sales, sales-price-to-list-price ratios, days on market and price-per-square-foot – to provide you a comprehensive North American Luxury Market report. Additionally, we have further examined all of the individual luxury markets to provide both an overview and an in-depth analysis - including, where data is sufficient, a breakdown by luxury single-family homes and luxury attached homes. It is our intention to include additional luxury markets on a continual basis. If your market is not featured, please contact us so we can implement the necessary qualification process. More in-depth reports on the luxury communities in your market are available as well. Looking through this report, you will notice three distinct market statuses, Buyer's Market, Seller's Market, and Balanced Market. A Buyer's Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point. By contrast, a Seller's Market gives sellers greater control over the price point. Typically, this means there are few homes on the market and a generous demand, causing competition between buyers who ultimately drive sales prices higher. A Balanced Market indicates that neither the buyers nor the sellers control the price point at which that property will sell and that there is neither a glut nor a lack of inventory. Typically, this type of market sees a stabilization of both the list and sold price, the length of time the property is on the market as well as the expectancy amongst homeowners in their respective communities – so long as their home is priced in accordance with the current market value.
REPORT GLOSSARY REMAINING INVENTORY: The total number of homes available at the close of a month. DAYS ON MARKET: Measures the number of days a home is available on the market before a purchase offer is accepted. LUXURY BENCHMARK PRICE: The price point that marks the transition from traditional homes to luxury homes. NEW LISTINGS: The number of homes that entered the market during the current month. PRICE PER SQUARE FOOT: Measures the dollar amount of the home's price for an individual square foot. SALES RATIO: Sales Ratio defines market speed and determines whether the market currently favors buyers or sellers. Buyer's Market = up to 14%; Balanced Market = 15 to 20%; Seller's Market = 21% plus. If >100%, sales from previous month exceed current inventory. SP/LP RATIO: The Sales Price/List Price Ratio compares the value of the sold price to the value of the list price.
“Global supply chain delays continue to be a source of frustration to all those involved in the homebuilding industry, from high-powered developers all the way down to homeowners doing a simple renovation. To solve this frustration, some have turned to sourcing locally available materials for renovations and home builds. This is favorable because it breaks the supply chain issue, but it also helps with the environmental footprint. In addition, it has led to designs that are more visually in balance with their surroundings.”
NORTH AMERICAN LUXURY REVIEW A Time for Innovation Inventory continues to remain below traditional levels, even though there has been a slight increase in the number of new listings coming onto the market over the last few months. Comparing March 2022 to March 2021, there was an overall 8.17% decrease in luxury single-family inventory despite a 15.20% increase in new listings. Similarly, March 2022 saw a 25.16% year-over-year decrease in luxury attached inventory with a 10.22% increase in new inventory. Demand in March 2022, especially for move-in ready homes, remains at an all-time high equaling and, in some markets, exceeding the number of sales recorded during March 2021. Prices continue to rise for high-demand property types, although not at the same velocity as last year. Last month, luxury sales prices rose 0.65% over March 2021, and attached luxury sale prices rose 7.88%. “We expect homes to move quickly, though it may be a bit less competitive than last year,” said Danielle Hale, chief economist with Realtor.com. “Construction is doing reasonably well, but we’re still seeing fewer homeowners deciding to sell than this time last year. There are baby steps in the right direction, but we still have fast-moving home sales and rising prices.” The bigger questions on everyone’s mind are the sustainability of demand in the luxury real estate market and the repercussions of rising inflation, higher interest rates, and the war in Ukraine. In February 2022, the Forbes outlook was optimistic about the future. “To recap, in a volatile global market, privately owned, high-quality real estate with stable income streams can constitute a prime allocation choice. Besides delivering relatively high yields, low volatility, and several portfolio diversification benefits, real estate has consistently been favored by advisors and investors due to
its ability to weather inflationary pressures while preserving and building value.” Statistical data certainly upholds that 2022 will remain a strong year for homeownership. In a new paper recently released by Lawrence Summers, a former Treasury Secretary and Harvard economist, his predictive analysis forecasts that housing inflation would occur at approximately 6.5% to 7% during 2022. Mansion Global recently shared that February saw a record month for bidding wars in the U.S, with 68.6% of offers on homes seeing competing bids. Homes listed between $1 million to $1.5 million recorded the highest rate at 76.6%. “The highest competition was for townhouses all over the country, with three out of four townhouses seeing bidding wars with a 75.3% rate. Single-family homes followed with 72.9%; multi-family homes with 64.8%, and condos and co-ops with 64.6%.” Equally dynamic are the statistics on the number of sales in luxury second-home markets. As our members explain, the only reason they are not higher is due to the lack of desirable inventory available for sale. This spring has not seen a slowdown in the number of affluent homebuyers seeking luxury properties, as they still look for homes with more space and locations offering more affordable prices. Some are relocating permanently; others are buying vacation or co-ownership homes, and finally, others are looking for investment opportunities. Ultimately, the biggest obstacle for these buyers and a return to more normal seasonal patterns in the North American luxury home market is the continued shortage of homes for sale; a result of the buying frenzy that took place in the wake of pandemic lockdowns and home construction failing to keep pace with the demand. Out of this incredibly constrained market, we see the rise of innovation.
Affluent buyers, frustrated with the continued competition and price increases, are turning to outlying neighborhoods, and some are ready to take on fixer-upper properties. There are pockets of communities surrounding many well-known destinations for the wealthy. Buyers looking for a longer-stay second home or co-habiting property have recognized there is often more choice and less competition for homes that check all their boxes. And they still have access to all the amenities just a short drive away. Equally, investors who have a little more time on their hands or can live in another property avoid competition by considering properties that need work. Many buyers are risk-averse to dealing with the current building supplies and contractor issues, but the return on investment could be immense. One way to measure the return is to look at the value of new construction in the area – it will help to understand the opportunity to take on a project and renovate it into a turnkey property with similar amenities. Global supply chain delays continue to be a source of frustration to all those involved in the homebuilding industry, from high-powered developers all the way down to homeowners doing a simple renovation. To solve this frustration, some have turned to sourcing locally available materials for renovations and home builds. This is favorable because it breaks the supply chain issue, but it also helps with the environmental footprint. In addition, it has led to designs that are more visually in balance with their surroundings. Unconventional methods are also popping up, including recycling rescued framing from a demolished property to using natural resources such as rocks, timber, sand, and even recycled products that create unique structural and interior wall features. The luxury condo market has seen an increase in demand, with top drivers for purchase by the affluent being innovative design with five-star amenities. Affluent buyers ready to move back into the city are once again looking at establishing a condo lifestyle. But their expectations are for the exceptional and range from living in the most desirable
neighborhoods, concierge, valet, or hotel services to larger outdoor spaces, LEED certification, and EV charging stations. Condo developers are innovating designs for their current and future projects – especially as pandemic-created demand has shifted many buyers’ attention toward low-rise buildings over traditionally popular skyscrapers. The fewer the number of apartments or townhomes within the building, the higher the ticket price compared to other apartment buildings in the same area. Add in luxury amenities such as rooftop terraces with outdoor kitchens, pet areas, touchless entry systems, indoor-outdoor business centers, app-controlled systems, and wellness retreat areas, and it’s not surprising to see the demand return. Buyers continue to value larger interior spaces – often wanting an additional versatile room – and large outdoor amenity spaces. Even landmark and historic buildings have transitioned to redesigning their interiors to meet these demands. Perhaps one of the most surprising innovations we have discovered, given the demand for larger homes and the lack of desire to build or renovate, is the rise of selling a teardown home with architectural plans for a new home or redesign already in place. Sellers are really selling the land, but with luxury properties in highly desirable areas increasingly difficult to find, providing initial design options can help a buyer see the potential – add in building permits and take the headache out of understanding zoning and local bylaws. It could be a game-changer for both parties. It’s a trend on the rise, according to Realtor.com, especially for luxury homes. The art of selling and buying in this market needs a critical and analytical approach; understanding the realities and setting expectations accordingly will ensure that goals are achieved. For homeowners looking to buy or sell in today’s market, we recommend working with a realtor who can capitalize on the preferences, trends, and demands in this dynamic and evolving environment.
– 13 - MONTH MARKET TRENDS – FOR THE LUXURY NORTH AMERICAN MARKET
Single-Family Homes
Attached Homes
Single-Family List Price
Attached List Price
All data is based off median values. Median prices represent properties priced above respective city benchmark prices.
20
20 21 11
15
15
10
11
17
16
14
12
11
12
11
9 8
5
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
$547 $425
$530 $422
$413
$523
$535 $423
$410
$402
$499
$501
$523 $403
$482 $396
$481 $379
$495
$521 $391
$300
$381
$400
$461
$500
$511
$600
$379
PRICE PER SQUARE FOOT
11
15
14
16
15
18
17
14
13
16
12
0 MAR
$200
$100
$0
SALES PRICE VS. LIST PRICE
11
$391
DAYS ON MARKET
25
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
$2,100,000 $1,900,000 $1,700,000 $1,500,000 $1,300,000 $1,100,000 $900,000 $700,000 $500,000
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
Discrepancies in previous month statistics between the March 2022 and April 2022 reports are due to the addition of Flagstaff, AZ, Aspen, CO, and Hilton Head, SC.
– LUXURY MONTHLY MARKET REVIEW – A Review of Key Market Differences Year over Year March 2021 | March 2022
SINGLE-FAMILY HOMES March 2021
March 2022
Median List Price
$1,799,500 $1,870,000
Total Inventory
Median Sale Price
$1,375,000
$1,383,950
New Listings
Median SP/LP Ratio
99.04%
100.00%
Total Sales Ratio
59.49%
83.74%
$379
$425
Median Price per Sq. Ft.
Total Sold
March 2021
March 2022
26,305
24,155
11,372
13,100
15,649
20,228
20
9
3,656
3,234
Median Days on Market Average Home Size
Median prices represent properties priced above respective city benchmark prices.
1,728
4,579
New Listings
Total Sold
11
24.25%
Med. Sale Price
Days on Market
Sales Ratio
8,950
$
SINGLE-FAMILY HOMES MARKET SUMMARY | MARCH 2022 •
Official Market Type: Seller's Market with a 83.74% Sales Ratio.1
•
Homes are selling for an average of 100.00% of list price.
•
The median luxury threshold2 price is $950,000, and the median luxury home sales price is $1,383,950.
•
Markets with the Highest Median Sales Price: Aspen ($10,400,000), Telluride ($5,369,588), Vail ($5,158,000), and Los Angeles Beach Cities ($3,750,000).
•
Markets with the Highest Sales Ratio: Waterloo Region (734%), Seattle (335%), East Bay (324%) and Phoenix (236%). Sales Ratio defines market speed and market type: Buyer's < 15.5%; Balanced >= 15.5 to < 20.5%; Seller's >= 20.5% plus. If >100%, sales from
1
previous month exceeds current inventory. 2The luxury threshold price is set by The Institute for Luxury Home Marketing.
– LUXURY MONTHLY MARKET REVIEW – A Review of Key Market Differences Year over Year March 2021 | March 2022
ATTACHED HOMES March 2021
March 2022
Median List Price
$999,450
$1,155,814
Median Sale Price
$834,250
$900,000
100.00%
100.00%
44.94%
79.34%
$461
$547
Median SP/LP Ratio Total Sales Ratio Median Price per Sq. Ft.
March 2021
Total Inventory
March 2022
12,284
9,193
New Listings
4,784
5,273
Total Sold
5,520
7,294
21
8
2,012
1,823
Median Days on Market Average Home Size
Median prices represent properties priced above respective city benchmark prices.
489
New Listings
1,774 Total Sold
Med. Sale Price
Days on Market
65,750
$
13
34.40% Sales Ratio
ATTACHED HOMES MARKET SUMMARY | MARCH 20 22 •
Official Market Type: Seller's Market with a 79.34% Sales Ratio.1
•
Attached homes are selling for an average of 100.00% of list price.
•
The median luxury threshold2 price is $700,000, and the median attached luxury sale price is $900,000.
•
Markets with the Highest Median Sales Price: Vail ($3,995,00), Aspen ($2,950,000), San Francisco ($2,600,000), and Santa Barbara ($2,375,000).
•
Markets with the Highest Sales Ratio: Lake Norman (900%), Howard County (550%), Waterloo Region (531%) and Douglas County (520%). Sales Ratio defines market speed and market type: Buyer's < 15.5%; Balanced >= 15.5 to < 20.5%; Seller's >= 20.5% plus. If >100%, sales from
1
previous month exceeds current inventory. 2The luxury threshold price is set by The Institute for Luxury Home Marketing.
APRIL
2022
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VANCOUVER B R ITISH COLU MBI A www./QHMBDRR/@M.com
VANCOUVER
SINGLE - FAMILY HOMES
LUXURY INVENTORY VS. SALES | MARCH 2022 Inventory
Sales
Luxury Benchmark Price 1: $2,500,000 $13,200,000+ $8,200,000 - $13,199,999 $7,200,000 - $8,199,999
54
1
106
1
$6,200,000 - $7,199,999
63
7
$5,200,000 - $6,199,999
124
9
$4,700,000 - $5,199,999
65
11
$4,200,000 - $4,699,999 $3,950,000 - $4,199,999
53
2
100
12 65
3
$3,700,000 - $3,949,999 $3,450,000 - $3,699,999
19
1
Total Sales Ratio2: 18%
64
21
103
30
$2,700,000 - $2,949,999
$2,500,000 - $2,599,999
Balanced Market
66
$2,950,000 - $3,199,999
$2,600,000 - $2,699,999
Total Sales: 191
15
$3,200,000 - $3,449,999
Total Inventory: 1,033
40
72
32 32
13 15
26
Square Feet3
Price
Beds
Baths
Sold
Inventory
Sales Ratio
-Range-
-Median Sold-
-Median Sold-
-Median Sold-
-Total-
-Total-
-Sold/Inventory-
0 - 1,999
$2,872,500
4
2
14
95
15%
2,000 - 2,999
$3,000,000
4
3
71
312
23%
3,000 - 3,999
$3,270,000
5
4
60
213
28%
4,000 - 4,999
$4,438,888
6
5
25
162
15%
5,000 - 5,999
$4,250,595
6
6
14
100
14%
6,000+
$6,030,000
7
6
7
147
5%
The luxury threshold price is set by The Institute for Luxury Home Marketing. 2Sales Ratio defines market speed and market type: Buyer's < 14.5%; Balanced >= 14.5 to < 20.5%; Seller's >= 20.5% plus. If >100% MLS® data reported previous month’s sales exceeded current inventory.
VANCOUVER
SINGLE - FAMILY HOMES
13 - MONTH LUXURY MARKET TREND 4 Median Sales Price
$3,321,500
878
$3,450,000
$3,350,000
1,181
1,222
$3,000,000
$3,179,000
1,198
Inventory
$3,268,000
$3,210,000
1,100
1,158
$3,398,400
$3,427,000
1,085
1,012
829 200
161
Mar-21
Apr-21
173 May-21
138
Jun-21
118
Jul-21
97
Aug-21
146
121 Sep-21
Solds
Oct-21
$3,550,000
$3,398,300
139 Nov-21
195
114
94 Dec-21
Jan-22
$3,230,000
1,033
902
822
787
$3,200,000
Feb-22
191 Mar-22
MEDIAN DATA REVIEW | MARCH TOTAL INVENTORY Mar. 2021
Mar. 2022
878
1,033 VARIANCE: 18 %
SALE PRICE PER SQFT. Mar. 2021
Mar. 2022
1,079
$
1,102 VARIANCE: 2 % $
TOTAL SOLDS Mar. 2021
Mar. 2022
200
191 VARIANCE: -5 %
SALES PRICE Mar. 2021
3.32m
$
SALE TO LIST PRICE RATIO Mar. 2021
Mar. 2022
Mar. 2022
3.23m VARIANCE: -3 % $
DAYS ON MARKET Mar. 2021
99.77% 100.08% VARIANCE: 0 %
Mar. 2022
8
9 VARIANCE: 13 %
VANCOUVER MARKET SUMMARY | MARCH 2022 • The Vancouver single-family luxury market is a Balanced Market with an 18% Sales Ratio. • Homes sold for a median of 100.08% of list price in March 2022. • The most active price band is $2,500,000-$2,599,999, where the sales ratio is 58%. • The median luxury sales price for single-family homes is $3,230,000. • The median days on market for March 2022 was 9 days, up from 8 in March 2021.
Square foot table does not account for listings and solds where square foot data is not disclosed. 4 Data reported includes Active and Sold properties and does not include Pending properties.
3
VANCOUVER
ATTACHED HOMES
LUXURY INVENTORY VS. SALES | MARCH 2022 Inventory
Sales
Luxury Benchmark Price 1: $1,400,000 $9,000,000+ $7,700,000 - $8,999,999 $6,700,000 - $7,699,999 $5,700,000 - $6,699,999
$4,900,000 - $5,699,999 $4,100,000 - $4,899,999 $3,500,000 - $4,099,999 $2,900,000 - $3,499,999
$2,500,000 - $2,899,999
13
0 10
0 0
0
Total Inventory: 783
5
Total Sales: 221
5
Seller's Market Total Sales Ratio2: 28%
19
0
33
1
42
5
57
7
65
6
$2,100,000 - $2,499,999 $1,900,000 - $2,099,999
91
25
$1,700,000 - $1,899,999
141
34
$1,600,000 - $1,699,999
68
35
$1,500,000 - $1,599,999
66
38
$1,400,000 - $1,499,999
1
89
25
79
45
Square Feet3
Price
Beds
Baths
Sold
Inventory
Sales Ratio
-Range-
-Median Sold-
-Median Sold-
-Median Sold-
-Total-
-Total-
-Sold/Inventory-
0 - 999
$1,475,000
2
2
11
91
12%
1,000 - 1,999
$1,650,000
3
2
177
540
33%
2,000 - 2,999
$1,913,511
4
4
28
123
23%
3,000 - 3,999
$3,160,000
4
4
5
21
24%
4,000 - 4,999
NA
NA
NA
0
4
0%
5,000+
NA
NA
NA
0
4
0%
The luxury threshold price is set by The Institute for Luxury Home Marketing. 2Sales Ratio defines market speed and market type: Buyer's < 14.5%; Balanced >= 14.5 to < 20.5%; Seller's >= 20.5% plus. If >100% MLS® data reported previous month’s sales exceeded current inventory.
VANCOUVER
ATTACHED HOMES
13 - MONTH LUXURY MARKET TREND 4 Sale Price
$1,701,000
$1,700,000
191
151
Mar-21
Apr-21
$1,759,900
786
746
739
670
$1,670,000
129 May-21
$1,767,500
745
109 Jun-21
Inventory
$1,722,500
Jul-21
$1,750,000
752
739
666
116
$1,752,000
Solds
$1,744,950
$1,850,000 $1,700,000
$1,688,500
739
114 Aug-21
Sep-21
140
135
119
Oct-21
Nov-21
Dec-21
Jan-22
221
216
160
103
783
642
610
560
$1,675,900
Feb-22
Mar-22
MEDIAN DATA REVIEW | MARCH TOTAL INVENTORY Mar. 2021
Mar. 2022
670
783 VARIANCE: 17 %
SALE PRICE PER SQFT. Mar. 2021
Mar. 2022
1,107
$
1,216 VARIANCE: 10 % $
TOTAL SOLDS Mar. 2021
Mar. 2022
191
221 VARIANCE: 16 %
SALE TO LIST PRICE RATIO Mar. 2021
Mar. 2022
99.94% 100.00% VARIANCE: 0 %
SALES PRICE Mar. 2021
1.70m
$
Mar. 2022
1.68m VARIANCE: -1 % $
DAYS ON MARKET Mar. 2021
Mar. 2022
8
9 VARIANCE: 13 %
VANCOUVER MARKET SUMMARY | MARCH 2022 • The Vancouver attached luxury market is a Seller's Market with a 28% Sales Ratio. • Homes sold for a median of 100.00% of list price in March 2022. • The most active price band is $1,500,000-$1,599,999, where the sales ratio is 58%. • The median luxury sales price for attached homes is $1,675,900. • The median days on market for March 2022 was 9 days, up from 8 in March 2021.
Square foot table does not account for listings and solds where square foot data is not disclosed. 4 Data reported includes Active and Sold properties and does not include Pending properties.
3
Thank you for taking time to view this report. For more information about Vancouver luxury market and buy or sell your luxury property, please feel free to contact me.
PRINCESS PAN PERSONAL REAL ESTATE CORPORATION
www. PrincessPan.com