Luxury Real Estate – An Increase in Demand & Opportunity
According to the Institute for Luxury Home Marketing (ILHM), “With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback. For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-size homes – specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.”
So what is happening? Well, as you may have experienced, due to the CoronaVirus (COVID-19) pandemic, more and more individuals are working from home. Kids are been required to participate in virtual learning and attend class from the comfort of their bedroom, dining table, etc. Gyms have closed or re-opened with strict guidelines, requiring / encouraging individuals to set-up their own home gym to work-out from. Parks have closed, requiring parents to entertain their kids and allow them to burn off their energy in their own outdoor space. Community pools have closed (or restrictions added), requiring individuals to abide by strict pool rules and time constraints. Restaurants and entertaining venues (i.e. concert halls and movie theaters) have closed, requiring families to get creative with their nights out (i.e. trying new recipes and setting up a picnic and/or a movie projector in the back yard for a picnic and/or drive-in experience).
In short, due to these closures and/or restrictions, individuals and families have acquired a greater appreciation for carefully designed floorplans and larger square footage. Home offices, separate study/school space, gyms, theaters, large kitchens, and resort style backyards are becoming increasingly popular. Accordingly, Southern California is experiencing a boost in demand for larger homes and a desire to enter the luxury market!
This is great news for existing homeowners of larger / luxury properties, as there is demand. The question that may follow, then is, although there is a demand, how does this correlate with buyers’ ability to purchase larger / luxury homes?
Well, the good news for buyers and sellers, interest rates have remained at record lows, thus making it more affordable to finance the purchase of a home. Additionally, as you may know, home values have been steadily increasing, thus creating greater equity for move-up buyers. Therefore, if you are a current home owner looking to move-up into a larger / luxury property, leverage your equity, place a greater down payment on a new home, and find the purchase of a move-up property more easily.
In other words, with the rise in demand for larger / luxury homes and increased abilities/opportunities to purchase such a property now is the time to move-up – low interest rates and high equity, translates into an easier ability to finance and afford a home.
Furthermore, if you currently do own a larger/luxury home and have been considering selling, then please contact me today. As a luxury market Realtor, not only do I know what it takes to sell your home for more and in less time, but with today’s demand and low inventory on the market, this is the right time to sell your home with as little competition as possible.
As always, if you need any help listing or buying a home, please don’t hesitate to reach out.