As residential real estate continues to revive after the economic shocks of the pandemic, high-end properties may be among the first to lead the recovery, according to many, including Yahoo's Finance. For the owners of luxury homes who were debating whether now is the time to list, last month’s activity both in Greenwich (where 2 waterfront properties traded at $17 and $45 million) and across the nation (where luxury properties are practically flying off the shelf) the decision should be clear.
And what a difference a few months makes. Back in April, when real estate activity hit the brakes in reaction to uncertainty over the virus, Yahoo reports that online searches “for pricey pads” fell nearly 10% from the previous year. That was the good news—at least compared with how luxury home sellers reacted. In the same month, listings for homes priced in the top 5% nosedived by 57.8%.
Explanations for the turnaround were numerous and credible. One senior economist at Realtor.com zeroed in on a frequent human reaction. “After being cooped up in homes, luxury buyers…are looking for more space.” As Forbes luxury reporter Dima Williams observed, not only was the segment recording a promising uptick in demand and inventory, but the entry prices were growing at a rate that eclipsed the rest of the market. Its year-over-year price rise of 6.1% made upscale housing the market leader. That is unlike previous market recoveries when luxury properties lagged behind other segments.
In a week that saw Wall Street falter, realtor.com’s director of research, Javier Vivas, saw a cause/effect relationship explaining data that showed luxury buyers “are returning in full force.” With confidence in the stock market waning, “Luxury buyers are seeing value in buying a second home as an investment and a getaway.” Our team can attest to this statement, where we are representing both sellers and buyers who are acting swiftly and decisively in their residential real estate purchases.