Are you the kind of person who dips a toe in the water before taking the plunge? Or do you cannonball off the high dive, trusting that the water's fine?
If you like to look before you leap, you might want to read about current market trends directly impacting luxury homes.
Surprise, surprise, there is high demand for the high life.
What Is Happening?
If you’ve been keeping your eye on luxury listings, maybe you’ve felt that things luxury homes are selling fast… like really fast. You are not alone in feeling this way.
The Luxury Market Report, published by the Institute for Luxury Home Marketing, confirmed our suspicions with cold hard facts.
The report indicates that in 2021 single-family luxury homes stayed on the market for about 38 days. This year, we’re looking at a meager average of 11 days per listing.
That’s nearly a month less time to join the bidding wars. If that doesn’t make you reach for a mai tai, this figure surely will: last February, the luxury real estate market’s sales ratio stood at a staggering 66.42%.
So, yes. It is a seller’s market. But that doesn’t mean you should panic, or put off your dreams of Hawaiian home ownership?
Why Is This Happening?
To put it simply, more people have more money.
According to the LMR, 2020 saw a 2.2% growth in the number of people whose net wealth exceeded $5 million.
But in 2021, that number grew by 19.8%. That’s an addition of over 660,000 people to the high net-worth bracket.
Everyone knows that real estate is the best way to diversify your portfolio, right? Right. So I’ll let you work out why the demand for luxury properties increased concurrently with this influx of affluent individuals.
Where Is This Happening?
I’m sure you’ve heard this observation many times already, but it’s especially true for real estate, so it bears repeating: the pandemic changed a lot of things.
Lockdown especially forced people to reconsider their priorities. Plus, the Covid work experience proved that many white-collar workers can easily work remotely.
And here's something that hasn't changed: taking calls from an airy lanai will always be way better than crouching over your laptop in a cramped Brooklyn apartment – however stylish that apartment might be.
The added appeal to relocating your work-from-home office to a luxury island spot such as Kona? Once you send the day’s last email, you’re a short drive away from hanging ten… or just hanging out at an oceanfront bar and grill.
Buying in a Seller’s Market
Finding your dream home is a difficult endeavor, even in ideal buying circumstances. But finding exclusive, high-end real estate? In Hawaii? In a Seller’s Market? It sounds like you could use some professional guidance.
Fortunately, I know just the guy who can make your real estate dreams come true. Get in touch, and I’ll help you find a house with the kind of luxury only the Big Island can provide.
Aloha, and welcome to Hawaii.