LUXURY REPORT EXPLAINED

NORTH AMERICAN LUXURY REVIEW

Luxury real estate sales for the first quarter of 2021 for North America, in fact for most of the world, show an unabated growth despite the ups and downs of the pandemic and economic pressures. Some industry experts would even go as far as to state that the constant uncertainty of new outbreaks and COVID-19 variants are key reasons that the affluent continue to invest in larger, more amenitypacked properties.

These experts are now able to use qualified data from around the world to support their predictions that the COVID-19 pandemic will continue to impact lifestyle choices and the housing needs of the affluent throughout 2021. The Institute’s recent analysis of sales in 2020 for homes over 5,000 square feet support the continuing preference for larger homes. The analysis determined that there was a 17% increase in the number of 5,000+ sq ft homes sold when compared to the number of sales in 2019.

Luxury home prices continue to see record highs in the majority of affluent ex-urban communities, as the influence of being able to work from home is still driving buyers away from living in high density areas. Low interest rates also remain in play, allowing buyers to realize the affordability of owning a larger property, which further reinforces this trend.

While many market analysts predict that current sales can not be sustained indefinitely they do not see a fall in price points during 2021, mainly because inventory levels continue to be at an all-time low across many luxury communities.

At the end of Quarter 1st, 2021 the single-family luxury market numbers in North America were trending upwards with median luxury sale price increasing from $1.375 million in December 2020