MADISON, N.J., Feb. 24, 2021 /PRNewswire/ -- Today,
Coldwell Banker Real Estate LLC, a Realogy (NYSE: RLGY) brand, and
the Coldwell Banker Global Luxury® program released
"The Report: 2021 Global Luxury Market Insights," an in-depth
analysis of emerging luxury markets and buyers. Included in the
report are noteworthy trends shaped by an extraordinary year full
of uncertainty and change, as well as top performing luxury markets
of 2020 and those to watch in 2021.
This year, "The Report" combined sales data analysis with a
record number of in-depth interviews from Coldwell
Banker® Global Luxury® Property Specialists
providing on-the-ground perspectives from diverse real estate
markets. In addition to these interviews, Coldwell Banker Global
Luxury also selected 40 of these Property Specialists for a
first-of-its-kind survey to better understand the shifts in
affluent property-buying trends and what lies ahead for luxury real
estate.
New definitions of luxury — like the intangibles of family,
health, space and security — spurred new affluent living
trends in 2020 as buyers realigned priorities by seeking out
properties with access to the outdoors, privacy and more space.
Demand for mega mansions, estates and other luxury compounds
surged, with 55% of Luxury Property Specialists surveyed noted that
more square footage was the number one amenity that flipped in
demand from 2019 to 2020. A new affluent demographic, known as
Trailblazers, drove shifting buying trends as they migrated away
from cities in favor of small, hidden gem towns, the suburbs, and
second home destinations.
As wealthy homebuyers embraced new lifestyles, new trends
prevailed. The top preferences expected to have staying power over
the next 5 years include: the home office (27.5%), demand for a
second home (22.5%), and the desire for single-family detached
homes (22.5%).
In 2020, there was a dramatic change in many luxury markets that
had been buyer's or balanced markets in 2019. Escalating demand now
pushed these markets into seller market territory, which is only
anticipated to continue into 2021. To determine the Top 10 "Power
Markets" of 2020, the Coldwell Banker® brand
collaborated with The Institute for Luxury Home Marketing to
analyze the markets with at least an average of 50 sales per month
and the highest sales ratio percentages. On reviewing the Top 10,
four new hotspots came into focus for a variety of reasons:
- East Bay, California: Both single family and
attached-home sales soared due to high demand as buyers' concerns
shifted from reducing daily commutes to gaining space. Inventory
could not keep up, as most listings prompted multiple offers and
drove up prices. This resulted in the sales ratio rising over 100%
after July.
- Colorado Springs,
Colorado: Growth in this city expanded faster than
predicted fueled by millennial and out-of-state buyers. The sales
ratio (38.84%) remained consistent with luxury single family homes
in high demand.
- Fairfax County,
Virginia: Luxury townhome sales saw unprecedented
levels; there was only a month of inventory for $645,000+ townhomes
in December, and even less for those in the $1M+ category, with a
51.93% sales ratio for attached homes.
- King County,
Washington: Pent-up buyer demand, driven by historically
low interest rates, desire for more space, and lower-than-expected
inventory levels, contributed to record low days on market and a
37.7% sales ratio at asking price.
"The Report" also identified four key categories of emerging
markets across the luxury home sector offering a range of lifestyle
amenities, cultural experiences, and educational opportunities. The
unexpected rise of these locations underscores the unforeseen
dynamics at play during 2020 as the pandemic impacted many buyers'
decisions.
Secondary Markets on the Rise
- Phoenix, Arizona
- Denver, Colorado
- Dallas, Texas
Markets Exceeding Expectations
- Salt Lake City, Utah
- Sacramento, California
- St. Louis, Missouri
New Discoveries
- Burlington, Vermont
- Reno, Nevada
- Coeur D'Alene, Idaho
Ready for Discovery
- San Antonio, Texas
- Knoxville, Tennessee
- Hamilton County, Indiana
Click to Tweet: What were the driving forces behind the
luxury real estate market in 2020? The Report by @coldwellbanker
details the top performing and emerging markets, along with
shifting buyer trends during an unprecedented year.
https://blog.coldwellbanker.com/coldwell-banker-the-report-2021/
QUOTES:
"The luxury real estate market showed its
resilience through a dynamic year as the market accelerated many
ongoing trends that were already occurring. The Report highlights
the achievements of 2020 and uses the rich insights from 78 Luxury
Property Specialists across 65 markets – a record for us. With
these timely perspectives, our Luxury Property Specialists can
prepare for what's to come in 2021 and continue to act as trusted
advisors as many shifting buyer trends and preferences are here to
stay."
- Craig Hogan, vice president of luxury, Coldwell
Banker Real Estate LLC
"2020 was a transformative for the luxury real estate market –
we saw record-low interest rates paired with demand at an all-time
high for single-family homes, resulting in extremely low inventory
levels and multiple bidding wars across several luxury markets. The
emergence of a new affluent demographic and type of home buyer
fueled this growth driven by shifting lifestyle preferences. Many
of the trends we saw at the forefront in 2020 will continue to
evolve in the years to come."
- Jade
Mills, president, Jade Mills Estates and International
Ambassador of Coldwell Banker Global
Luxury®
About The Report
Designed to be a definitive guide for
international high-end property buying and selling, The Report adds
insider intelligence to strong industry research by combining
anecdotal insights from local market professionals affiliated with
the Coldwell Banker® brand, as well as The Institute for
Luxury Home Marketing, Wealth-X, and other leading luxury
insiders.
Methodology
The Coldwell Banker Global
Luxury® program collaborated with The Institute for
Luxury Home Marketing, Wealth-X and other third-party data sources
to analyze median list prices of sold properties, median sold
prices, median sales-price-to-list-price ratios, median
price-per-square foot, median days on market, as well as the
highest list and sold prices for the top 5 percent and 10 percent
of 65 U.S. luxury metros. The data for this report is based on
closed and recorded sides of homes sold during 2020; the
statistical information has been calculated using closed sales
activity reported over a 13-month period from December 1, 2019 to December 31, 2020, as gathered from multiple
sources including but not limited
to various Multiple Listing Services, local Real
Estate Boards and the Coldwell Banker brand co-operating
brokerage firms. Data is deemed reliable but not
guaranteed for accuracy as it may not reflect all of the real
estate activity in the area. For more
information on how data was collected and defined, please refer to
the full methodology on pages 128-129 of The Report.
About Coldwell Banker Global Luxury®
The
Coldwell Banker Global Luxury® program legacy traces its
roots to 1933 and has been a world leader in luxury real estate
since. Coldwell Banker Global Luxury Property Specialists are an
exclusive group within the Coldwell Banker organization, making up
under ten percent of independent sales associates affiliated with
the brand worldwide. Coldwell Banker affiliated agents conducted
32,663 transactions of homes priced at $1
million or more in 2020. This equates to $168.4 million in luxury sales every day (+16.6%
YOY) with an average sales price of $1.9
million in this category. Coldwell Banker, the Coldwell
Banker logo Coldwell Banker Global Luxury and the Coldwell Banker
Global Luxury logo are registered marks owned by Coldwell Banker
Real Estate LLC. Each franchise is independently owned and
operated.
About Realogy Holdings Corp.
Realogy Holdings Corp.
(NYSE: RLGY) is the leading and most integrated provider of
U.S. residential real estate services, encompassing franchise,
brokerage, relocation, and title and settlement businesses as well
as a mortgage joint venture. Realogy's diverse brand portfolio
includes some of the most recognized names in real
estate: Better Homes and Gardens® Real Estate, CENTURY
21®, Coldwell Banker®, Coldwell Banker
Commercial®, Corcoran®, ERA®, and Sotheby's
International Realty®. Using innovative technology, data and
marketing products, high-quality lead generation programs, and
best-in-class learning and support services, Realogy fuels the
productivity of independent sales agents, helping them build
stronger businesses and best serve today's consumers. Realogy's
affiliated brokerages operate around the world with approximately
190,700 independent sales agents in the United States and
nearly 130,000 independent sales agents in 115 other countries and
territories. Recognized for ten consecutive years as one of
the World's Most Ethical Companies, Realogy has also been
designated a Great Place to Work three years in a row and
one of Forbes' Best Employers for Diversity. Realogy is
headquartered in Madison, New Jersey.
Media Inquiries:
Athena
Snow
Coldwell Banker Real Estate LLC
973.407.5590
Athena.Snow@coldwellbanker.com
Jackie Hart
G&S for Coldwell Banker Real Estate LLC
845.505.7881
JHart@gscommunications.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/coldwell-banker-releases-the-report-a-comprehensive-profile-of-the-2021-luxury-real-estate-market-301234454.html
SOURCE Coldwell Banker Global Luxury