MADISON, N.J. (February 19, 2020) Today, Coldwell Banker Real Estate LLC, a Realogy (NYSE: RLGY) brand, and the Coldwell Banker Global Luxury® program released “The Report: State of Luxury 2020,” a comprehensive profile of emerging luxury markets and buyers. Included in the report are trends as well as top preforming luxury markets of 2019 and those to watch in the upcoming year.
“The Report” combines analysis of sales data with interviews of dozens of Coldwell Banker® affiliated agents who provide on-the-ground perspectives from diverse real estate markets.
Luxury trends in 2019 include migrating wealth, impacts from tax law changes in 2018 that limited deductions for state and local taxes and a focus on holistic wellness and eco-friendly design. The report also dives into how the luxury market has been impacted by LGBTQ+ and millennial demographics.
In identifying the top performing luxury markets this year, the Coldwell Banker brand found that four powerhouse markets had an evenly distributed hold on the top 10% of luxury sales in 2019. Their sales prices in relation to other luxury markets made them the top performers of the industry this past year.
2019 Top Performing Luxury Markets in Review
● Malibu, California
● San Diego, California
● Austin, Texas
● Arlington, Virginia
After analysis of economic factors such as job and population growth against annual metrics including sales-price-to-list-price ratios, days on market, median list price and inventory, “The Report” also identified this representative group of housing markets to watch in the year ahead.
2020 Top Luxury Markets to Watch
● Boise, Idaho
● Charlotte, North Carolina
● Colorado Springs, Colorado
● Cincinnati, Ohio
● Fort Worth, Texas
“Power Markets” include both well-established and unexpected luxury markets offering a range of lifestyle amenities, cultural experiences and educational opportunities. Key indicators of “power” status include airport accessibility, ease of doing business, a prestige brand presence and a housing stock that prioritizes privacy, views and exclusivity.
To narrow down the top ten Power Markets for Buyers and Sellers in 2019, as well as other key trends for affluent investors, the Coldwell Banker Global Luxury program collaborated with The Institute for Luxury Home Marketing to analyze the top 10 percent of active and sold listings in 2019.*
Based on the median prices for the top 10 percent of homes sold in the Power Markets, key findings include:
● Shortest Days on Market: Raleigh-Durham, North Carolina, boasted the shortest median days on market – three days – for single family homes. For condos, Silicon Valley had the shortest median days on market at eleven days.
● Most Affordable (Price per Square Foot): Collin County, Texas, was the most affordable luxury market for single family homes, where the median price per square foot was $164. For condos, Colorado Springs, Colorado, had the lowest median price per square foot at $153.
● Most Expensive (Price per Square Foot): On the flip side, the most expensive market for single family homes is Malibu, California, where the median price per square foot was $4,269. Malibu also took the top spot for condos at $1,914 median price per square foot.
● Evolving Market: Bozeman, Montana, stands out as an Evolving Market for its booming population, now over 100,000. The city’s average sales price is hovering over $1 million. Buyers from California and Colorado are the major contributors of its expanding luxury real estate market.
Click to Tweet:
QUOTES:
“Now in its third year, The Report showcases the luxury real estate successes of 2019 and highlights the trends expected to dominate in 2020. Our affiliated agents are seeing demographic shifts in the profile of the modern luxury buyer that bring new perspectives and preferences to the luxury market. It’s an exciting time to work in the luxury real estate space, and The Report continues to be an all-encompassing, timely resource for Coldwell Banker Global Luxury Property Specialists to prepare for the year ahead.”
– Craig Hogan, vice president of luxury for Coldwell Banker Real Estate LLC
“2019 was a transformative year for the luxury real estate market – we watched millennials and the LGBTQ+ community become larger stakeholders in luxury real estate and shift the profile of who’s buying. New trends are on the horizon: eco-friendly and wellness-focused design is in for 2020, and larger homes aren’t always preferred like they once were. Now that energy efficient technologies are widely available, the expectation of a green-certified building is growing.”
– Ricardo Rodriguez, luxury property specialist with Coldwell Banker Residential Brokerage – Boston, MA
Correction: Charleston, S.C., was incorrectly listed as a Market to Watch.
About The Report
Designed to be a definitive guide for international high-end property buying and selling, The Report adds insider intelligence to strong industry research by combining anecdotal insights from local market professionals affiliated with the Coldwell Banker® brand, as well as The Institute for Luxury Home Marketing, Wealth-X, Unique Homes and other leading luxury insiders. More information on the following can be found in the full report.
● Shifting demographics in the luxury real estate market
● 2019 landmark listings and sales
● Trends driving the ultra-high-net-worth population such as wellness and amenity focused homes
● Top luxury property must-haves
● Wealth migration and financial trends
● Domestic and global spotlights
Methodology
*The Coldwell Banker Global Luxury® program collaborated with The Institute for Luxury Home Marketing to analyze median list prices of sold properties, median sold prices, median sales-price-to-list-price ratios, median price-per-square foot, median days on market, as well as the highest list and sold prices for the top 5 percent and 10 percent of 65 U.S. luxury metros between the periods of December 16, 2018 to December 31, 2019, as gathered from various Multiple Listing Services (MLS), local Real Estate Boards and the Coldwell Banker® brand co-operating brokerage firms. Data is based on closed and recorded transaction sides of homes sold in the top 10 percent of luxury metro markets between the periods of December 16, 2018 to December 31, 2019, as gathered from multiple sources including but not limited to various Multiple Listing Services, local Real Estate Boards and the Coldwell Banker brand co-operating brokerage firms. Data is deemed reliable not guaranteed for accuracy as it may not reflect all of the real estate activity in the area. This report was compiled by The Institute for Luxury Home Marketing. For more information on how data was collected and defined, please refer to the full methodology on page 124 of The Report.
**To maintain data integrity, comparisons do not include data from Manhattan, NY, which uses a unique multiple listing service (MLS) that reports on data differently than most MLS databases.
About Coldwell Banker Global Luxury®
The Coldwell Banker Global Luxury® program legacy traces its roots to 1933 and has been a world leader in luxury real estate since. Coldwell Banker Global Luxury Property Specialists are an exclusive group within the Coldwell Banker organization, making up under ten percent of independent sales associates affiliated with the brand worldwide. Coldwell Banker affiliated agents conducted 27,595 transactions of homes priced at $1 million or more in 2019, more than any other national real estate brand. This equates to $144.4 million in sales every day with an average sales price of $1.9 million in this category. Coldwell Banker, the Coldwell Banker logo Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo are registered marks owned by Coldwell Banker Real Estate LLC. Each franchise is independently owned and operated.
About Realogy Holdings Corp.
Realogy Holdings Corp. (NYSE: RLGY) is the leading and most integrated provider of residential real estate services in the U.S. that is focused on empowering independent sales agents to best serve today’s consumers. Realogy delivers its services through its well-known industry brands including Better Homes and Gardens® Real Estate, CENTURY 21®, Climb Real Estate®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran Group®, ERA®, Sotheby’s International Realty® as well as NRT, Cartus® and Title Resource Group. Realogy’s fully integrated business model includes brokerage, franchising, relocation, mortgage, and title and settlement services. Realogy provides independent sales agents access to leading technology, best-in-class marketing and learning programs, and support services to help them become more productive and build stronger businesses. Realogy’s affiliated brokerages operate around the world with approximately 190,000 independent sales agents in the United States and approximately 110,400 independent sales agents in 112 other countries and territories. Realogy is headquartered in Madison, New Jersey.
Media Inquiries:
Athena Snow
Coldwell Banker Real Estate LLC
973.407.5590
Athena.Snow@coldwellbanker.com
Rachel Braude
G&S for Coldwell Banker Real Estate LLC
917.595.3061
RBraude@gscommunications.com
