A comfortable home is high on the list of priorities right now for many buyers. Nowhere is that more evident than in the luxury housing sector, where sellers often receive multiple offers, and owners are investing in upgrades that make staying in a lot easier.
A just-released survey by Luxury Portfolio International and YouGov paints a picture of a market in which luxury buyers are lining up for homes that meet all their needs for sheltering in place. These homes are in demand, with three buyers for every two sellers, the authors said.
Here a few key takeaways from the report, titled The Modern Luxury Home: Reimagined:
Wellness has become a firm fixture in luxury living, with consumers often foregoing depreciating assets such as cars and boats to invest in improving their homes. Spending on travel, dining out, fashion and jewelry has been supplanted by the need to create multi-purpose living environments.
Demand is expected to remain strong and even surge if Covid-19 concerns taper off between April and August next year, according to the report. However, this trend evens out over the next three years, the authors predict.
It’s wise for sellers to take back-up offers to insulate against disruptions the pandemic might cause in buyers’ finances. Buyers should also work closely with their agents to ensure they’ve crafted a strong offer. What amenities are high on buyers’ lists? According to the study, this varies slightly by price range and generation. Generally, here’s what buyers said is important in homes between $1 million and $5 million+:
- Space for outdoor activities
- Home offices
- Wellness amenities (e.g., steam shower)
- Security systems
- Home theater
- Formal dining areas
In Part II, we’ll look at what the study found regarding generational preferences for luxury homes in the era of Covid.