Three Things that Make Q4 2020 a Great Time to Make a Move into the Luxury Housing Space

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

Three Things that Make Q4 2020 a Great Time to Make a Move into the Luxury Housing Space

 

By the end of the last decade, 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.

 

It's a great time to move into the luxury home space

 

Here are Three Things that Make Q4 2020 a Great Time to Make a Move into the Luxury Housing Space

 

1. Prices


The U.S. housing market 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.

Activity in the Market

 

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 the Luxury Market Report, homes are selling for an average of 97.77% .

 

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.

 

Buyers are coming back into the market

 

3. Buyers Are Shopping


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, we have almost a full quarter left to get this done. 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 Q4, 2020 a Great Time to Make a Move into the Luxury Housing Space

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Joe Jackson 10/23/2020 07:33 AM
  2. Roy Kelley 11/05/2020 01:00 AM
Topic:
Home Buying
Location:
North Carolina Mecklenburg County Charlotte
Groups:
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LuxuryRealEstate.com Network For ActiveRain Members
Hyper-Local
Charlotte North Carolina Area
Buyer Information - What Buyers Need to Know in Today's Market
Tags:
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charlotte nc luxury home sales
luxury home buying charlotte nc

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Rainmaker
3,570,742
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Debe,  Excellent blog and so true why now is the time to be out there buying homes.

 

Oct 23, 2020 07:58 AM #10
Rainmaker
6,032,213
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Congratulations, Debe, on your feature recognition.

Prospective home buyers will be in very good hands when they seek your professional real estate advice and assistance.

Oct 23, 2020 08:01 AM #11
Rainmaker
3,438,641
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

Yes Debe Buyers are Shopping. Luxury home buyers are out and about looking to purchase. Now is the perfect time to buy!

Oct 23, 2020 09:07 AM #12
Rainmaker
315,219
Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate

Absolutely! Now is the time to move up.

Oct 23, 2020 10:43 AM #13
Ambassador
3,815,106
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, George Souto! There are definitely good arguments for moving up. One great one is the point that Grant Schneider made - move-ups will free up some lower priced homes, which we greatly need.

Oct 23, 2020 01:10 PM #14
Rainmaker
3,465,852
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debe not the first time but my friend George Souto  and I are in total agreement, Endre

Oct 23, 2020 11:01 PM #15
Rainmaker
2,248,005
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Debe Maxwell, CRS - Your blog posts are consistently clean and fresh, filled with great ideas. I'm happy to see this one featured and even more happy for your success. May you continue to shine!

Oct 24, 2020 02:23 AM #16
Rainmaker
4,017,088
Dorie Dillard CRS GRI ABR
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Debe Maxwell, CRS ,

EXCELLENT post and so glad to see it featured. The points are right on and I agree with Grant Schneider "This really is a good time to upgrade to luxury.  If we can convince more to do it then we will have more inventory in the lower price range."

Oct 24, 2020 07:47 AM #17
Rainmaker
649,255
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

Hi Debe,

Congrats on your featured post. Good post with many good points. Our market has seen more than usual in the million plus dollar homes being sold. 

Oct 24, 2020 06:27 PM #18
Ambassador
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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!

And, thank you, Joe Jackson! I think the tips apply to pretty much any place on the planet! 

Oct 28, 2020 03:22 AM #19
Ambassador
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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!

I think the next few months will continue to show change but, you know, we are programmed to turn on a dime...and we will again, Rocky Dickerson!

Oct 28, 2020 03:22 AM #20
Ambassador
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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 you, Will Hamm! Hope you're having a great week!

Oct 28, 2020 03:23 AM #21
Ambassador
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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 you, Roy Kelley - you are so kind. I so appreciate your wonderful comments!

Oct 28, 2020 03:23 AM #22
Ambassador
3,815,106
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

It really is! We were able to downsize but, move 'up' to the lake and the interest rate had a LOT to do with it. It's a great time to move up, for sure! 

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 

Oct 28, 2020 03:24 AM #23
Ambassador
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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 you! Indeed it is, Shannon Jones! Happy Wednesday!

Oct 28, 2020 03:25 AM #24
Ambassador
3,815,106
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I'm happy to hear that, Endre Barath, Jr.

Hope you're having a great week!

Oct 28, 2020 03:25 AM #25
Ambassador
3,815,106
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Thank you so much, sweet Patricia Feager, MBA, CRS, GRI,MRP! Your comments always make my heart smile! ❤️ 

Oct 28, 2020 03:26 AM #26
Ambassador
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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 you so much, Dorie Dillard CRS GRI ABR! I loved Grant's added tidbit - it's so true!

Oct 28, 2020 03:27 AM #27
Ambassador
3,815,106
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Our luxury market is doing fairly well here too, Steve Higgins but, it's a great time to be a buyer in today's luxury market. I'd love to see more of them MOVING!

Oct 28, 2020 03:28 AM #28
Rainmaker
649,255
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

Hi Debe,

It's good to hear your luxury market it doing well too. I totally agree with you and I would also love to see more of them selling as we are seeing a fair amount of them coming on the market.

Oct 28, 2020 06:50 PM #29
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