“The luxury market has been leading the recovery for about two years,” said Laurie Moore, founder of the Institute for Luxury Home Marketing. “When real estate values dropped during the downturn and other investments lost their luster, luxury residences really became an investment focus and became a portfolio as much as a lifestyle purchase.”
Sales of the priciest 1% of homes in the United States are up 21.1% so far this year, following a gain of 35.7% in 2013.
There are currently more than nine million millionaires in the United States, according to the Millionaire Corner Affluent Market Insights — and they’re ready to shop. According to the National Association of Realtors® sales of homes costing $1 million increased 7.8% in March from the same period a year ago. Many high-income buyers are actually downsizing, but moving to big cities like New York and Los Angeles — the top two luxury markets in the United States.
When it comes to buying a home with a seven-figure price tag, here’s what experts say buyers are demanding:
• Décor that tells a story. Moore says owners want to be able to tell their guests stories about a home’s features. “It’s like luxury travel; it’s all about the experience.“
• Not your average amenities. Experts say buyers in condos are looking for doormen and concierges, exercise and bike rooms, a pool, open roof tops, dry cleaning pick up and drop off and cleaning services.
• Outdoor living space. Not only do buyers want a big back yard that they can landscape and entertain in, they also want to cook outdoors. “People love the whole indoor/outdoor feel. Having an outdoor kitchen is simply easier when entertaining, than having to run back and forth inside. Affluent homeowners want outdoor space that offers room for multiple gardens, swimming pools and maybe even a putting green.”
• Every chef’s dream kitchen. According to Leslie Piper, consumer housing specialist, 54% of luxury buyers identify a chef’s kitchen as their top feature when house hunting.
• Extravagant garages. For homes outside the city, high-income buyers want multi-car garages that can store all their vehicles and toys.
• Green for green. Expert says wealthy homeowners want properties that have environmentally-friendly appliances and features — and they are willing to pay for them.
• Wine cellar. Move over fridge, Moore says luxury homeowners want a wine cellar that allows for both case and bottle storage.
Shorewest is affiliated with Luxury Portfolio — the largest global network of independent luxury brokerages. Through this affiliation, Shorewest is able to market these homes — locally, regionally and across the globe with the distinction they deserve. Contact your Shorewest REALTOR® to find your luxury home today.
Categories: Home Buying