Coldwell Banker Real Estate LLC, an Anywhere® (NYSE: HOUS) brand, and the Coldwell Banker Global Luxury® program today introduced its 2024 Mid-Year Report, complementing the highly coveted Trend Report. Key trends within the report include growing optimism among high net-worth individuals and an influx of new, sought-after inventory bolstering a solid spring market. A survey of Coldwell Banker Global Luxury Property Specialists further supports these findings, as they reported affluent buyers continuing to seek out “have-it-all” properties and shifting their preferences toward finding their “forever” dream homes.
Backed by additional insights from Coldwell Banker Global Luxury Property Specialists and data from the Institute for Luxury Home Marketing, an analysis of the first six months of 2024 reveals a modestly stronger luxury single-family home market compared to the same period in 2023. The market’s robust demand is evidenced by the close alignment between final sale prices and initial listing prices, underscoring the continued appeal of well-positioned properties.
In addition to the luxury market conditions, key findings in the 2024 Mid-Year Report include:
Continued Demand for “Have-It-All” Properties
A critical factor driving the luxury real estate market is desirable inventory, where “have-it-all” properties offering tailored lifestyle experiences continue to be in the highest demand among discerning buyers. In fact, over 44% of Coldwell Banker Global Luxury Property Specialists said that demand persists for well-priced, impeccably presented high-end properties, particularly those that are “unicorns” such as move-in ready, new construction or highly amenitized.
According to 23% of Coldwell Banker Global Luxury Property Specialists, constrained inventory continues to pose a significant challenge to sales. The confluence of discerning buyers and a scarce availability of exceptional “unicorn properties” is expected to shape the luxury housing market for the remainder of 2024.
The “Forever” Dream Home
Approximately 22% of luxury real estate agents have observed a waning interest in trends that emerged during the pandemic, signaling a transition towards the concept of a “forever” home. During the peak of the pandemic, the affluent demographic sought residences, however, evolving market dynamics and shifts in remote work policies have led many to search for homes that align with their long-term aspirations. Today’s buyers are in pursuit of homes that offer the adaptability to grow and change alongside their evolving lifestyles. Coldwell Banker Global Luxury Property Specialists have noticed that transitions in life stages are increasingly becoming a primary motivator for property sales, leading to a preference for homes that can accommodate a family’s needs through various life phases.
Sustained Consumer Optimism
Heading into the latter half of 2024, the confidence of affluent consumers remains a pivotal element bolstering the steadfastness of the luxury real estate market. This sentiment is echoed by Coldwell Banker Global Luxury Property Specialists, with approximately 70% affirming their belief in the market’s robustness for the current year.
A segment of high net-worth individuals is adopting a cautious stance, preferring to await a more favorable market and political climate prior to engaging in property transactions. Notwithstanding the prevailing uncertainties for the remainder of the year, about 33% of Coldwell Banker Global Luxury Property Specialists are optimistic about a surge in real estate activity as the year progresses.
The dynamic observed during the first half of the year underscores the long-term strength of luxury real estate. Coldwell Banker Global Luxury Specialists—armed with data-driven insights—are adeptly prepared to navigate their affluent clientele through the complexities of this dynamic market environment, steering them towards successful outcomes. To explore the Mid-Year Report, visit https://www.coldwellbankerluxury.com/editorial/reports
QUOTES:
“It’s gratifying to see many of the trends that we identified in January holding true and new ones taking shape halfway through the year. A strong spring season combined with high confidence in the market from consumers makes me optimistic about what’s to come for luxury real estate in 2024. It’s encouraging to see the rise in demand for ‘forever’ homes and move-in ready residences. Despite challenges in the market, luxury agents can leverage these insights to finish the year strong. The Mid-Year Report serves as a checkpoint to ensure our agents are on the right track to guiding their clients toward success this year.”
- Michael Altneu, vice president, Coldwell Banker Global Luxury
“There is a fundamental shift happening in the luxury real estate market as of late. Properties that are priced correctly are achieving offers above asking price, often multiple offers, indicating a more balanced market. This report underlines the importance of effective pricing and marketing strategies amidst challenging conditions while creating favorite opportunities for both luxury buyers and sellers now and in the months ahead.”
- Jade Mills, president, Jade Mills Estates and International Ambassador of Coldwell Banker Global Luxury® program
Methodology
The Coldwell Banker Global Luxury® program collaborated with their Luxury Property Specialists (through the means of a survey), Wealth-X, an Altrata Company and the Institute for Luxury Home Marketing to provide insights into wealth, real estate, property investment, luxury spending preferences, and emerging trends. For The Mid-Year Report 2024, the Institute for Luxury Home Marketing analyzed the data for the top 10% of 126 U.S. markets. Data contained is from January 1, 2020 to June 30, 2024 and has been computed by the Institute for Luxury Home Marketing’s data research partner and shared with Coldwell Banker Global Luxury® and based on information attained both privately and publicly. For more information on how data is was collected and defined, please refer to the full methodology on page 32 of The Mid-Year Report.
