DENVER, Jan. 4, 2022 /PRNewswire/ -- REALM, the first
globally collaborative real estate platform that combines real-time
data with human experience and networking, recently completed a
comprehensive membership Economic Forecast Survey for 2022.
Valuable industry insider results focus on the latest in-demand
amenities and design features in the luxury and ultra-luxury
markets. REALM's survey asked key questions on topics ranging from
sales volume to interest rates to inventory expectations, to what
is driving individual markets for 2022.
"REALM members represent the most elite luxury real estate
professionals in the industry, with a significant number of members
included on the REAL Trends/Wall Street Journal's The
Thousand, which ranks the top producers in the U.S," says
Julie Faupel, REALM founder, and
Chief Executive Officer. "Their ability to forecast trends we're
seeing for 2022 is a value unrivaled in our industry," Faupel
adds.
Many REALM members experienced 2021 as their strongest year in
the industry ever. As we move into 2022 there is intelligent
optimism and renewed energy among REALM's members for another
record-breaking year. Below are the questions REALM members
responded to.
Many REALM members experienced record sales in their markets
across the U.S. in 2020. As we wrap up this year, how have sales
been for you in 2021?
As luxury markets around the U.S. hit historic highs in sales
activity and selling prices, REALM members report 2021 was a
personal best year for many. Almost 80% saw their sales surpass
those of 2020. Over 14% had 2021 sales numbers around the same
compared to the previous year. Members who enjoyed increased sales
hailed from such diverse locales as Atlanta, Nantucket, San
Francisco, New York,
Wyoming, Cape Cod, Chicago, Salt Lake, Napa Valley, Connecticut, and Santa Barbara to name just a few.
Do you predict that the "great
migration" of luxury buyers moving that we saw early in
the Pandemic will continue in 2022 and why?
As reported in REALM and WealthX's 2021 report, urban areas shut
down when the pandemic became reality resulting in the "great real
estate migration" to the suburbs and beyond. Buyers sought larger
properties with outdoor amenities where multi-generations could
shelter safely. Almost overnight what previously had fallen in the
"wants" category for buyers became "must-haves."
Here's why close to 85% of respondents expect 2022 to continue
the "great migration." Debra
Johnston of Coldwell Banker Realty in Atlanta said, "Some buyers are anticipating
what the market will do and others are making bigger and
longer-term decisions." Across the county in San Francisco's Kevin
Wong of Compass is "seeing our HNW clients using real estate
to further diversify their asset portfolio and continue to purchase
real estate outside of their current location to keep their options
open."
Will interest rates change in 2022?
Within the last several weeks it was forecast that the Federal
Reserve would raise rates several times in 2022. It's a
wait-and-see situation for now. REALM asked members to weigh in on
potential rate changes. The majority (92%) think rates will "rise a
little."
Will prices for luxury residences change in your market in
2022?
REALM Members depending very much on location had mixed opinions
on luxury market price increases in 2022. With 66% of members
responding who expect prices to "rise a little," 17% look to prices
remaining stable. An additional 16% of members are forecasting
prices will rise a lot.
Will the inventory of luxury homes change in your market in
2022?
Inventory constraints across most markets at all price points
was the headline story of 2021. Almost half of REALM members (45%)
expect inventory to remain the same. Other members are equally
split between expecting more inventory and less inventory becoming
available in 2022. Around 28% forecasted more inventory while close
to 27% believe less inventory will be on the market. Ed Kaminsky President & CEO of Kaminsky Real
Estate Group in Hermosa Beach,
California expects more inventory. "The migration sellers
will want to sell so they can get to their new location. Sellers
who are profit-motivated might sense an incredible increase in
equity and will want to take advantage of it."
Which factors will drive sales of homes to your
market?
A variety of key market fundamentals will be key to driving home
sales in various markets. According to 71% of REALM members, an
increased desire for a second home will drive sales in their
respective markets. Buyers and sellers ranked relocating second,
garnering 52% of responses, while 44% of members looked to
Millennial buyers to fuel sales.
Compass agent Philip Berson who
focuses on the luxury Los Angeles
suburbs of Calabasas, Hidden Hills, and Malibu looks to "sellers and buyers relocating
out of the market, wealth transfer from parents to adult children
and an increased desire for secondary homes" to fuel the market.
Other REALM members like Compass agent Dave
Gove of Lake Tahoe feel that "there is an increased desire
for secondary homes plus people want out of the cities still."
What top luxury amenities will your luxury buyers look for in
2022?
REALM members around the country agree that luxury and
especially ultra-luxury buyers expect five-star amenities in 2022.
Whether they are purchasing a Napa
Valley estate or Malibu
beachfront property here's what makes the "must-have" list. Fully
appointed outdoor chef's kitchens became even bigger since the
pandemic began as Sunday night at home suppers became daily
rituals. With climate change top-of-mind, environmentally-friendly
green living and sustainability can make or break a deal. "People
want more acreage. For second homes it's about land, golf, family
compounds, sustainable living, and wide-open spaces," notes
John Eric of Compass on Arlington, Virginia.
"Acreage, views, access to lifestyle amenities like skiing,
hiking, fishing, horse and golf are what people want today. They
are also driven to "private residence clubs with many amenities so
that they can have all the lifestyle benefits in the "safety" of
their campus," explains Faupel. Waterfront and view properties also
check the boxes for that luxury buyer whether in Florida or the Rocky Mountains.
What key design elements will your luxury buyers seek in
2022?
It's no surprise as people have come to value home as their most
prized asset that elements to enjoy that home with family and
friends ranks highly. Think swimming pools, expansive home gyms
with sauna and steam, and luxury home theatres with
state-of-the-art technology. Ruth Kennedy
Sudduth, Principal and Vice-Chair of LandVest in
Boston points to
"multi-generational accommodations" for luxury buyers.
John Eric of Arlington, Virginia where some high-powered
politicians call home notes, "in our market, it's about expanded
home gyms, panic rooms, in-home medical suites for telemedicine and
the all-important backyard needs of pools, outdoor kitchens, and
ADUs."
As the intrinsic value of the home remains a top priority for
many, REALM will look to 2022 to track more as trends to
emerge.
About REALM
REALM is the first globally collaborative real estate platform
that combines real-time data with human experience and networking.
Its membership is comprised of the most accomplished real estate
professionals ever assembled. A REALM membership is a relationship
enhancer, with a game-changing technology platform that will
enhance client data, provide a lifestyle profile for a member's
clients, and then match elite REALM members anywhere in the world
based on the clients they represent and the listings they
have. Since launching in March of 2020, REALM has grown to
nearly 500 members across 35 states and 9 countries. REALM also
represents over 100 different real estate brands, with many members
ranked among the elite in their markets and across the United
States. To learn more, go
to https://www.realmglobal.com
Press contact: Terri Tiffany
Terri@SandHillPRPartners.com 650 387-7720
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SOURCE REALM