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Whether Adustment or Reduction, Luxury Homes are Giving Up the Greed

By Kevin J. May

Real Estate Agent with Florida Supreme Realty SL514814

September 20, 2019 03:37 AM

It wasn't too long ago that Sellers would accept my valuation for their homes and be content with that number knowing I guaranteed at least 98% of that figure as a sale price. I could also guarantee that the time on market from listing to close would be far less than the market average.

Granted, I do not accept every listing and that continues to this day, however, the challenges that exist now are no different than I've experienced several times over. It is within those challenges where real estate continues to excite the senses while helping to pay the bills.

Whereas Sellers used to offer inspiration through their pricing I've recently found that their sense of aspiration is finally beginning to yield once again. The realization has set in that unlike the river carving its canyon, money is unable to purchase them any more time.

This is the new reality in the luxury residential market: Deeper price cuts, fewer sales and listings that are lingering ever longer.

From Los Angeles to New York and Chicago to Miami, luxury home market has been in the grips of a prolonged slowdown. Experts say that’s due in part to the recent pullback of foreign buyers, especially following increased capital controls from China. But stock market uncertainties, “aspirational” pricing and a glut of supply has also played a roll.

Still, there have been several sky-high home sales this year, including the $238 million that hedge funder Ken Griffin paid for a Manhattan mansion in January and the $100 million WhatsApp co-founder Jan Koum dropped on a Malibu compound last month, the overall slide in the luxury market continues.

But with a downshift underway, most professionals are looking to adapt in any way they can in order to keep the deal volumes up. The increasing amount of money developers are spending on amenities (some calling them gimmicks) speaks volunes to the challenges of the market. Extras like luxury concierges, pet care, private tutoring and urban farming have all been offered to attract buyers. But will it work?

Original article published August 2018 c/o TheRealDeal.com

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Wayne Martin

Wayne M Martin - Chicago, IL

Real Estate Broker - Retired

Good morning Kevin. Value and uniqueness continue to guide the wealthy. Various economic pressures are concerns that have slowed the market. Enjoy your day!

Sep 20, 2019 05:09 AM

Kevin J. May

Hobe Sound, FL

Kevin J. May

I cannot fault anyone for giving it the old college try, however, the associates are not helping with the outcomes either. Rarely do I see persons giving up their $12,000,000 listings readily.

Sep 20, 2019 09:28 AM

Ron and Alexandra Seigel

Napa Consultants - Carpinteria, CA

Luxury Real Estate Branding, Marketing & Strategy

Kevin,

We are seeing increased buying activity where our clients work in Florida. So far even prior to the season really starting (late Nov) they are packing their pending list). A

Sep 20, 2019 07:02 AM

Yes, it's happening mainly due to exaggerated pricing finally reaching the edge of reality. Sometimes it feels as though the Seller's need that 1st year of marketing under their belts before becoming competitive. Those that know me take me at my word and save both of us a lot of time. The goal should always begin by becoming the #1 competitor in any market for best results.

Sep 20, 2019 09:18 AM

Steffy Hristova

HomeSmart Elite Group Tempe AZ Tel: 602.710.8161 - Tempe, AZ

Tempe AZ Realtor - Your Home Close to Your Work!

Hi Kevin, I notice this article was published a year ago, and it is true today, too, I believe.

You're correct Steffy, the adjustment bureau has worked it's magic and the luxury market is falling into place.

Sep 20, 2019 09:20 AM

Brian England

Ambrose Realty Management LLC - Gilbert, AZ

MBA, GRI, REALTOR® Real Estate in East Valley AZ

For me, it has seemed like the luxury market is always a bit slower than the affordable housing market, as there is definitely a larger audience for the more affordable homes.

Sep 20, 2019 07:34 AM

I used to think that way Brian although today the number of Buyers at these upper reaches have not been curtailed during the last decade in my opinion. That said the adage "Keeping up with the Joneses" continues unabated!

Sep 20, 2019 09:38 AM

Whether Adustment or Reduction, Luxury Homes are Giving Up the Greed

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