LPI: THE STATE OF THE LUXURY REAL ESTATE MARKET 2022
2021 saw an unprecedented real estate market with record sales due to shrinking inventory and immense demand. This year, sellers are feeling incentivized more than ever to sell, and with buyer demand still high, 2022 is looking to remain a strong and active year in real estate.
The report published by Luxury Portfolio International, is the luxury marketing division of Leading Real Estate Companies of the World, boasting an invitation-only residential real estate network that spans 70 countries with a strong commitment to the high-end. Download LPI’s State of Luxury Real Estate Report for 2022 below.
TAKE NOTE
Double, almost triple the amount of luxury sellers are willing to sell their houses now in 2022 as opposed to 2021, as 71% of luxury sellers believe their home will increase in value.
Less luxury buyers and more luxury sellers are creating more of a balance and neutralization in the market in 2022. It will remain to be a seller’s market even though the perception among buyers and sellers is that competition will increasingly be aggressive.
Buyers may not want to act as fast as home prices and mortgage rates rise and their purchasing power lessens. Yet that is coupled with the buyer’s fear of missing out on opportunities in this market.
Supply Chain troubles have dampened new construction and increased the cost of raw materials, which results in a higher demand for existing inventory and turnkey homes.
With the push to work from home due to the Pandemic, 19% of buyers are looking for better places to live. With that comes looking for bigger homes with multiple amenities such as home offices, swimming pools, movie theaters, and game rooms.
From a Design standpoint, a focus on sustainability, blurring of the division between home and office, and bringing the outdoors in have remained important trends.
Architectural Digest suggests that 2022 will see a design focus on Accessibility, where every family member can enjoy the house at every point in their lives keeping in mind aging parents, toddlers, and people living with disabilities.
Looking back at 2021, the market was red hot with existing home sales being the highest they have been since 2006. Looking ahead to 2022, the search for existing inventory with the right amenities will remain a driving force in the market.
