In the past, and especially right after the recession, our luxury issues were reporting statistics within the luxury market that weren’t all that great. The highest prices sold were not all that impressive for a major U.S. city, or they were few and far between. But that seems to be changing – luxury listing prices and sales have increased, according to reports as well as the agents we interviewed in this issue’s cover story.
Lisa Trace, an experienced luxury agent with Griffith, Grant and Lackie in Lake Bluff, agrees that the luxury market is incrementally becoming stronger. According to statistics from Coldwell Banker Residential Brokerage’s Luxury Report (page x) and the Appraisal Research Counselors (page x), time on market and total sales volume for the luxury sector are trending upward.
“We are seeing much shorter market times and lower inventory levels,” Trace says in our cover story on page 16. “One interesting thing occurring in our market is that younger buyers tend to want newer construction, but we have so many beautiful older homes and estates available. I definitely think that the market has been challenged by these younger buyers.”
While luxury buyers are a different kind of buyer who expect a higher standard of quality and customer service, no matter what transaction they are partaking in, the fact that younger buyers are moving toward luxury new construction homes instead of existing luxury homes speaks to the changing trend among luxury buyers. It will be interesting to see how this generational gap in luxury home desires affects the market, but for now, the low inventory is helping all markets, including the luxury market, rebound.
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