Coldwell Banker® strives to provide the best tools and information for agents and clients to reach their goals, including their luxury buyers and sellers. That’s why they recently released Luxury in Review 2017. This 80-page report provides a considerable amount of insight into the health of the national (and international) luxury real estate market.
Wondering about Wilmington? We’ve provided some brief insight below.
Luxury Real Estate Stats
On an annual basis, The Institute for Luxury Home Marketing compiles the real estate sales data of the prior year to gauge the health of the luxury market and predict trends for the current year. The luxury single-family detached home sales data from 2017 shows a very stable and dependable market. With the ease of inventory constraints, prices have leveled off and demand for luxury homes has remained consistent, creating what could be considered the new normal for the luxury home market since the boom of the post-Recession years. This is good news for investors, buyers, and luxury home owners who hope to benefit from a healthy market.
While inventory shortages have put the pressure on lower-end homes, inventory of single-family detached luxury homes rose 30% in 2017 with the peak of the market aligning with the traditional high-sales months of July and August. Sales slowed slightly, and the overall median sales price decreased; however, the sales-price-to-list-price ratios rose indicating that pricing is leveling out and the market is normalizing.
Single-family detached homes aren’t the only properties showing healthy trends. Luxury condos are doing quite well, especially compared to performances of previous years. The median condo prices have remained consistent, inventory has risen, and the average days on the market have decreased.
Changing Luxury Buyer Trends
Although the luxury market as a whole appears to be obtaining an equilibrium, individual markets are seeing a shift. Advances in technology are making homes more accessible, which is affecting buyer trends. Luxury buyers are no longer restrained by location, which has caused a boost in outlying luxury markets, especially those in larger cities where the land is mostly built out. It’s also important to note that luxury markets near tech hubs (Greater Seattle, Greater Tacoma, Portland, Raleigh-Durham, San Francisco and Silicon Valley) are seeing explosive growth and sales.
Also affecting the luxury market is the growth of ultra-high-net-worth individuals, who Wealth-X, a market research company specializing in high-wealth individuals, defines as those with $30 million in assets or more. Half of these people own 2 homes and 10% own 5 homes or more around the world. Nearly 43% of these individuals are located in the Americas. Right now, their combined asset holdings total about $30 Trillion USD and 8.9% of that is real estate and luxury assets.
By 2020, it is anticipated that the number of ultra-wealthy individuals will exceed 318,000 with their cumulative net worth rising 54% to $46.2 Trillion USD.
What’s in Demand
High-end finishes and quality craftsmanship will never go out of style, but the must-haves among luxury buyers are changing. The trend of grandiose displays of wealth has declined. Instead, buyers are looking for smaller properties with quality-rich amenities. They want smart home automation, eco-friendly (GREEN) features, unique designs, and custom spaces, like enclosed basketball courts, statement cellars, resort-style pools, showcase garages, gourmet kitchens, and gorgeous outdoor living spaces.
The Wilmington NC Luxury Market
While the national real estate market may show a steady trend of sales, regionally things can be much different. Some local luxury markets may have slower sales and lower inventories while others may be selling well above the national trends, especially those rich with lifestyle amenities and booming job markets.
In 2017, the Wilmington luxury housing market saw a considerable improvement from 2016. The median sale price for single-family detached homes increased over $60,000 to $995,000 (highest was $4,995,000) and units sold increased by 17% to 196 homes. The average days on the market dropped from 122 days to 89 days and the sales-price-to-list-price ratio improved by over 2%. While it’s only the 4th month of 2018, sales are already right on track to match last year’s.
Coldwell Banker Global Luxury℠ Specialist
If you’re considering selling your luxury home in the Wilmington area, Melanie Cameron is a Coldwell Banker Global Luxury℠ Specialist. She would love to speak with you about your options and the top-notch marketing The Cameron Team provides. Give her a call at (910) 202-2546 or send her a message through the contact page.
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