Buying luxury homes can be a very exciting experience. The process involves taking a look at the location, amenities, and highest sales price. This can be a bit overwhelming. However, the right knowledge can help you make the right decision.
Location
Buying a luxury home can be a daunting task, but with the help of a specialty luxury real estate broker, the process becomes as painless as the purchase. Luxury properties are typically located outside the major city centers and can be found on the other side of town. Besides being in a nice neighborhood, these properties offer their own set of advantages, such as privacy, convenience, and a sense of exclusivity.
There are literally thousands of luxury properties on the market today, so it’s important to choose the best one for your lifestyle. If you’re in the market for a new home, Berkshire Hathaway HomeServices Select Properties can help. A company representative will discuss your needs and your budget, and then put you in touch with the best agents on the island. Whether you’re looking for a place to retire, start a family, or just want to downsize, your local BHHS agent can help. The right agent will help you find the right home for your lifestyle.
Amenities offered
Having luxury amenities can be a nice perk. Some luxury homes even come with spa rooms. These can include large soaker tubs, towel warmers and shower jets.
Luxury home owners also like to have the latest and greatest in home technology. Smart home features like automated lighting and smartphone controlled climate control are highly desirable. Having a home theater with a projection screen is also a plus.
Having a large open floor plan can be a luxury. It makes it easier for families to spend time together. Having an open kitchen can be a plus as well. It allows for multi-use rooms, such as a dinner preparation area.
For some luxury home owners, the most important luxury amenity is having enough space for staff. People who pay a premium for an apartment will often entertain friends and family in their free time. They will also want enough space to play sports, read a book and work out.
One of the most important luxury home amenity is having a nice view. Having a view of a large garden, lake or even an open skyline can be a nice perk.
Average starting price
Depending on the region, the average starting price for luxury homes ranges from $1 million to more than $10 million. The market for these types of properties varies, depending on the county or neighborhood, but there are a few common trends.
While the overall market for luxury homes has been cooling, new listings are starting to increase. This is one reason why the overall supply of luxury homes is not dropping as quickly as it did last year.
Luxury home sales decreased across most of the country, but New York was the only metro that saw an increase. Sales fell in all but one of the top 50 metros. The largest decreases were in Los Angeles (-36.1%), San Jose (-32%), Oakland (-31.3%), and Miami (-33.7%).
The median price for luxury homes declined from the peak in the spring of 2021, but was still above the pre-pandemic levels. The decline was caused by a drop in sales and a rise in interest rates.
Highest sales price
During the first three months of this year, luxury home sales in the U.S. plunged 28.1%, more than the 23.6% drop during the 2020 pandemic. According to the most recent Redfin report, the luxury housing market is cooling faster than ever.
Rising interest rates, inflation and economic uncertainty are cited as the main factors in the decline. Buyers may be hesitant to purchase luxury goods at these times, and cash buyers are staying away from the market.
However, many high-end buyers still take out mortgages. With more options to choose from, sellers need to price their homes correctly to attract buyers.
Luxury real estate continues to break price ceilings, but affluent buyers are also backing off. The tepid stock market and rising mortgage rates are cited as the main factors in the slowdown.
In addition, luxury home listings are also declining. The number of active listings for luxury homes decreased in 36 of the 50 most populated metros. The biggest declines were in Oakland, CA (-63.9% YoY), San Jose, CA (-46.1% YoY) and San Diego, CA (-35.9% YoY).
The median sales price for luxury homes rose 19.8% year-over-year, but it declined from its peak of 27.5% in the spring of 2021. The biggest gains were in Detroit, MI (17%), West Palm Beach, FL (45%) and Austin, TX (23.6%).
