3 Things that Make 2020 a Great Year to Make a Move into the Luxury Housing Space

By
Real Estate Agent with www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 228209

2020 Luxury Market Forecast

3 Things that Make 2020 a Great Year to Make a Move into the Luxury Housing Space 

 

By the end of the last decade - specifically 2019 - many homeowners found themselves with more equity than they knew they had, while simultaneously, job stability was sound and wages were increasing. When those factors unite, homeowners begin to dream - dream of upsizing and/or purchasing a second home. During the past two years, many homeowners have realized this improved financial status and are now seeking homes in the luxury space. 

 

Luxury homes in Charlotte NC

 

Three Things that Make 2020 a Great Year to Make a Move into the Luxury Housing Space 

 

1. Prices

The U.S. economy is strong today, with buying opportunities throughout the luxury end of the market. Thomas Veraguth, Strategist at UBS Global Wealth Management, says in Barrons.com,

 

“There’s a good link between luxury real estate prices and [economic] growth.”

 

Available inventory is 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. While many economists consider the US to be in the depths of a ‘guarded luxury market,’ global economic events seem to have nearly removed the ‘guarded’ from the conversation during the past 2 years.

 

Charlotte luxury homes for sale

 

2. Market Activity

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 the Luxury Market Report, homes sold for an average of 96.94% of the list price in December, 2019.

Buyers are also getting more for their money with greater purchasing power due to the current low interest rates.

 

  • Migration to New Markets 

As a Guild member of the Institute for Luxury Home Marketing, trends and data are always interesting to follow. Each market is vastly different and, as evidenced by the most recent data, 2019 saw a continuation and escalation of real estate investment into 2nd and even 3rd tier markets.  Dallas, Houston, Denver, Seattle, and Las Vegas, previously on the luxury second home radar (2018), last year (2019) saw cities, including Jacksonville, Charlotte, Nashville, Cincinnati, Boise and Kansas City, added as markets of significant growth in the luxury space. 

 

Luxury properties are now more than stopping-off locations for a second home, a week here or there… Second homes in the luxury market must offer the full-home experience allowing executives to live, play and work – and bring their family (humans as well as fur babies) and friends with them too! 

 

  • New Groups of Influence 

Okay, we all focus on a well-rounded business and seem to be inundated with information on millennials of late. There are some important nuggets in these reports about different segments of society. This year, there has been a growing acknowledgement of the power of the millennials. This group is a generation set to inherit the greatest wealth by 2030 from their baby boomer parents. According to a recent global luxury report, this figure is estimated at nearly $68 trillion. 

 

Due to the recession and the propensity for millennials to carry large student loan balances, this group may have been slower to accumulate wealth and partake in homeownership than previous generations. Research shows that over 92% of millennial millionaires are now homeowners who wisely recognize that real estate is a way to build wealth. Their influence will continue to be profound and is already being translated when we look at the significant changes in the types of properties, locations, and amenities in demand. 

 

Luxury market update charlotte nc

*Graphic and some quotes provided by KCM (Keeping Current Matters). 

3. Buyers Are Coming Back

Homeowners with an entry-level home can now take advantage of their equity and the inventory shortage at the lower end of the market, driving their sales prices higher on their current homes. For those homeowners, the stars have aligned for those who are ready to make a luxury move.

 

“We’ve already seen buyers who’ve been on the sidelines for two years trend back into the market.”

 

Bottom Line

Whether it be a first, second or third home, if you’re considering entering the luxury market, 2020 is expected to be a great year to do so. For those who are ready to make that move, let’s talk! Let’s set a time to meet with your financial planner and put a solid real estate investment plan in place - whether new or expanded. Call or text (704) 491-3310.

 

© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com |Three Things that Make 2020 a Great Year to Make a Move into the Luxury Housing Space

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Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I love your perspective on this!

Please have an awesome week Debe Maxwell, CRS 

Jan 19, 2020 10:29 PM #1
Rainmaker
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James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Debe.

To the best of my limited memory, I don't believe I have any agents in that specialty

Jan 20, 2020 02:03 AM #2
Rainmaker
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Debe. 2020 is the year to make the break for those with the determnation to do so! Enjoy your day!

Jan 20, 2020 05:00 AM #3
Rainmaker
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Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Debe Maxwell, CRS - Of course, I agree with everything you said but I can't get over the view in that second image. My mind wondered.  We have some homes with breathtaking views but I was picturing myself at that desk. How could I get any work done? ! LOL !

Jan 20, 2020 09:48 AM #4
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is a great report to share.

Smart consumers are anxious to take advantage of the very attractive mortgage interest rates.

Jan 20, 2020 10:03 AM #5
Rainmaker
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Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Debe,
Excellent expose on why now would be a great time to move into the luxury market.

Jan 20, 2020 01:17 PM #6
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
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Debe you present a good case to make the move, and right now is a great time to consider doing it.

Jan 21, 2020 11:25 AM #7
Rainmaker
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Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Debe Maxwell, CRS - When it comes to marketing and sales, I am always in awe at how easy you make it look. However, only the best in real estate have that skill at making people believe it's easy. What you do before, during, and after sales is very hard work. When you enjoy doing what you do others are impressed with how you conduct business and how you make others feel. 

I have had the pleasure of communicating with you on many occasions and you always come across concise and clear - you care! You really, really care!

Jan 21, 2020 12:28 PM #8
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Well, you have an awesome week too, Paul S. Henderson, REALTOR®, CRS! Thank you for always putting a smile on my face!

Jan 21, 2020 07:50 PM #9
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

James Dray, I used to think you could make this a niche but, in a Metro market like Charlotte, you really can't. We serve so many families - all are not moving from million-dollar mansions to another of the same! They downsize to 55+ communities or their children buy their first condo, etc. My preference is to serve the entire family and that may or may not include the purchase or sale of a luxury home in their lifespan.

Jan 21, 2020 07:53 PM #10
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Thank yuo, Wayne Martin! I totally agree and it's going to be a FANTASTIC year, without a doubt!

Jan 21, 2020 07:53 PM #11
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

HaHa, Sheri Sperry - MCNE® - I couldn't agree more! I could get lost in that view. Being a visual person, properties with views are my absolute favorites.

Jan 21, 2020 07:54 PM #12
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Yes indeed and jumbo rates are looking very good right now too, Roy Kelley!

Jan 21, 2020 07:55 PM #13
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Well, thank you so much, Carol Williams

I hope you're having the start to a wonderful week!

Jan 21, 2020 07:56 PM #14
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
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It truly is, George Souto and you are well aware at how amazing the jumbo rates are right now! 

Jan 21, 2020 08:00 PM #15
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Oh, you are so kind, Patricia Feager, MBA, CRS, GRI,MRP! We are both experienced at making it look easy - thankfully we have been blessed to be able to do so. And, I agree wholeheartedly - when you love what you do, others can sense that...and appreciate it. I think it gives them confidence and as for me and my clients, I always hope that it makes them feel good!

Thank you! I apologize for being so distracted of late - I do care and yes, I really, really care! I hope this finds you feeling SO much better - better with every passing day!

Hugs, my friend! 

Jan 21, 2020 08:13 PM #16
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