By the end of last year, many homeowners found themselves with more equity than they realized, and at the same time their wages were increasing. When those two factors unite, it can spark homeowners to think about making a move to a larger or more expensive home in the luxury space. That said, now is a perfect opportunity to take a look at the forecast for the 2020 luxury market.
Three Things to Think About in the 2020 Luxury Housing Market
The U.S. economy isstrongtoday, with buying opportunities throughout the luxury end of the market. Thomas Veraguth,StrategistatUBS Global Wealth Management,saysinBarrons.com,
“There’s a good link between luxury real estate prices and [economic] growth.”
Availableinventoryis a key element that can impact home prices. At the upper range, the inventory is greater in comparison to the entry-level market, making moving up to a luxury home a growing reality for many buyers right now.
2. Activity in the Market
With more buying opportunities at the higher end, we should start to see an increase in activity. The same article states,
“Affluent homebuyers will start to come out of the woodwork as they find rising luxury rents less appealing and sellers get even more negotiable on price.”
Buyers looking in the luxury market are taking the opportunity to negotiate on price in a segment where there are more choices, too. According to theLuxury Market Report, homes sold for an average of 96.94% of the list price in December.
Buyers are also getting more for their money with greater purchasing power due to the currentlow interest rates.
3. Buyers Are Coming Back
Keep in mind, buyers are often sellers too, especially those looking to move up. Homeowners with anentry-level homecan take advantage of the inventory shortage at the lower end of the market, thus driving higher sales prices for their current homes. Combined with growing equity in the homes they’re listing, it’s a great time for those who are ready to make a luxury move.
The extra equity and greater purchasing power are bringing many buyers back to the market. The same article mentioned that,
“We’ve already seen buyers who’ve been on the sidelines for two years tread back into the market.”
If you’re considering entering the luxury market, 2020 is shaping up to be a great year for those who are ready to make that move. Let’s get together to set your real estate plan for the year.
Author:Vail Manfre Phone: 504-452-0058 Dated: January 16th 2020 Views: 505 About Vail: Vail is a native of Louisiana and has lived on both the South shore and North shore. She has enjoyed...
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The Realtors at Manfre Home Team have lived on both the Southshore and Northshore. They have enjoyed waterfront living where they spent time boating, fishing, crabbing and swimming. Along with their knowledge of the areas, they are passionate about the needs and goals of their clients and their interests. The team specializes in guiding clients through their home buying or selling process, step-by-step. Also, as an investor, Vail worked with a business partner over a decade to renovate and establish homes for Louisiana families. You’ll enjoy getting to know the Manfre Home Team, but more importantly you'll appreciate their attention to details, professionalism and genuine desire to help you have the best home buying or selling experience. Whether you want information regarding the housing market or to discuss information regarding Saint Tammany, Jefferson, Orleans, Tangipahoa and incl uding but not limited to Mandeville, Madisonville, Covington, Ponchatoula, Metairie , Hammond, Lafitte, Luling, Lacombe, Slidell, New Orleans, Lakeview, etc., you’ll be glad you called the Manfre Home Team at RE/MAX Alliance for all of your Real Estate needs. As REMAX Realtors the team can also assist with any purchase or sale across the USA or Internationally! They welcome your call today. MANFRE HOME TEAM (Because Hustle & Strategy Matter!) 504-452-0058 Licensed in Louisiana