Our partners at Luxury Portfolio International, a network of independent luxury brokerages making up the luxury division of Leading Real Estate Companies of The World, just completed their annual white paper and according to these stats, it’s a good time to sell your luxury home.
The report indicates that international buyers have both an emotional and financial interest in U.S. luxury real estate, with preferences ranging across cultural and geographic lines. The population of affluent consumers continues to grow around the world, as does their interest in and emotional relationship with real estate. If you own a piece of Southern California luxury real estate, here’s what you need to about your potential buyers.
$1 to $4 Million is the sweet spot for international buyers
According to the report, the $1-$4 Million range makes up 80% of luxury home purchasers and truly serves as our “core” or “foundational” high-end home market. If your house falls within this price range, then it’s a good time to sell your luxury home. Curious how much your home is currently worth and if it falls in this sweet spot? Use our free home valuation tool and find out now.
Within that range, buyers and their preferences vary slightly by demographic origin. Overall, 59% of global luxury buyers prefer urban living, 41% prefer traditional architecture and 21% are looking for a home between 3,000-5,000 square feet.
- Asian buyers prefer urban settings with contemporary, modern, or loft architectural styles
- European buyers are split between for urban and non-urban living
- Middle Eastern buyers seek an urban environment, however put a greater emphasis on the need for space
It’s interesting how the ownership of real estate–an indicator of wealth–is different both geographically and culturally as well. The report looks at, “What home means around the world.” Globally, 35% believe real estate is the most obvious signifier of wealth. Europeans are most likely (44%) to see a home as a determiner of wealth, according to the report.
38% of global high-net-worth individuals are considering a purchase in the next 3 years
Lucky for us, the population of affluent consumers is continuing to grow, along with their interest in the physical and emotional relationship with real estate. In fact, interest in purchasing residential real estate remains high, with 38% of the global high-net-worth individuals considering a purchase in the next three years. It’s a good time to sell your luxury home because there is a healthy audience of international buyers looking to buy right now.
Not only do they believe that owning luxury real estate is the most obvious indicator of success, they also believe it’s a significant driver of personal wealth. The report also shows that 23% of the global high-net-worth individuals are considering a sale in the next three years, indicating an affinity toward long-term investments.
78% say their residence is a “home,” rather than just a “house”
Among the top reasons for purchasing in the next few years, the most popular answers among respondents included quality of life improvement (40%), financial investment (34%), and looking to upsize (24%).
Reasons for a property being just a home include that it is not a dream residence (35%), only living there for a short while (28%), and having plans to renovate (26%). When buyers do have an emotional connection to a space, the most important factor is location (50%). With so many global high-net-worth individuals recognizing the value in real estate, it’s a good time to sell your luxury home.