Monthly Real Estate Thoughts
What is luxury Real Estate?
Is it property priced at $1 million-plus? A home with more than 3,500 square feet? A mansion that sits in a country club gated neighborhood?
I googled it trying to find a nice concise definition to give you, but there really isn’t one or even a few definitive data points that make a property luxury. Most experts, real estate and financial, tie luxury to money, but there’s no one number.
Luxury is market specific. It usually includes homes that sell in the top 10% price range in the local market. In dollar terms, seven figures for a single-family home seems to be a generally accepted figure around the U.S. for defining what luxe. In July 2022, the Institute for Luxury Home Marketing, a credential-awarding, and research group for real estate agents specializing in high-end residential properties put the median luxury home price at $1.31 million.
What are features currently in high demand for buyers looking for luxury property?
Uncrowded environs – since the pandemic buyers have been prioritizing not just the suburbs but exurbs. 37.5% of the luxury property specialists surveyed by one large real estate company reported that a large lot or acreage was the number one amenity wanted by buyers.
Home offices – more and more Americans have moved to full-time remote work post pandemic. Home offices have become a must have for many luxury buyers. In many households both spouses work remotely so having multiple work areas in a home is a must for a new home.
Swimming pools – Pools tied for second place with home offices on the amenity list. HomeLight reported that 22% of their agents rated those private amenities like a pool, gym, or outdoor rec space as key features on a luxury listing.
Prime location – Homes in prime locations near beaches, lakes, golf courses, ski resorts, and other lifestyle interests are considered favorites for luxury home buyers.
Why did we choose The Cliffs in upstate South Carolina?
We were looking for a luxury home that gave us the lifestyle amenities that would provide us a unique opportunity to enjoy our hobbies within a lake mountain region. We love lake life, golf, tennis, pickleball, hiking in an area that paid attention to honoring nature and providing luxury world-class amenities. You may be thinking – good luck – does a place like that even exist?
It does at the Cliffs. The Cliffs consist of seven different communities. Four of the communities are nestled in the Blue Ridge foothills between Asheville, NC and Greenville, SC. Three communities are built along beautiful and clear Lake Keowee in upstate South Carolina. Each community has a championship golf course, world-class club house, tennis, pickleball, lifestyle groups that keep your calendar full of things to do like biking, hiking, travel, etc. The best part is if you belong to one club you have access to all seven clubs. There is a luxury life for everyone to find at The Cliffs.
It is why we settled at The Cliffs on Lake Keowee and why I wanted to help others find their dream. I chose Sothebys because when you buy luxury you should be helped by the best. Sothebys is synonymous with luxury real estate. I chose Joan Herlong & Associates because they put their clients first and are unwilling to compromise their ethos. If you have any questions on the area or luxury real estate, please reach out or leave questions in the comments. I will answer each one.
I will leave you with a few thoughts on 2024.
Key 2024 Housing Market Predictions from the National Association of Realtors:
· NAR predicts 4.71 million existing home sales in 2024 which is up 13.5% from 2023. This should provide more inventory for buyers in 2024.
· The annual median home prices are expected to remain largely unchanged at the national level in 2024 for the second straight year. This should improve affordability for some buyers as income grows faster than housing costs.
What will interest rates do in 2024?
· Most economists predict that we will see several interest rates drops in 2024. It is an election year so things can change due to political swings, but overall, it appears that 2024 will be a good time for Sellers and Buyers to take advantage of lower rates.
· This week the Federal Reserve kept the federal funds rate steady for the fourth straight time. The rate has held steady in the 5.25% to 5.5% range (this is not the same as mortgage rates). It appears the rationale is inflation is still a concern. The good news is inflation is continuing to slow.
· Economic activity is still expanding at a solid pace, boosting optimism about avoiding a recession in 2024.
· Despite these fluctuations, home prices are expected to continue to rise in 2024. Many experts suggest buying a home now before inventory gets worse. Remember the simple principal of supply and demand drives prices.
If you are interested in a free copy of Sotheby’s Luxury Home Outlook for 2024, email me and I will add you to my distribution list. If you have thoughts or comments on the blog please send them to me.