Realtor.com® Survey Finds 13 Percent of Consumers Ready to Buy a Luxury Home

The survey also found that 26 percent of consumers are considering a luxury home purchase

PR Newswire

SAN JOSE, Calif., April 24, 2014 /PRNewswire/ -- Nationally, 13 percent of surveyed consumers are ready to buy a luxury home and another 26 percent are considering a high-end home purchase, according to the Luxury Homebuyer Survey conducted by realtor.com®, a leader in online real estate operated by Move, Inc. (MOVE). Survey data reveals the buying motivations of transaction-ready consumers and others considering purchase, as well as provides insight into their preferred luxury property amenities and resale expectations. Realtor.com® surveyed more than 1,500 visitors to its website from March 17 to April 2.

Percentages of surveyed consumers currently considering a luxury home purchase:

  • 13% of respondents stated that they are looking to purchase a high-end luxury home;    
  • 26% said they might be considering a high-end luxury home;  
  • 61% revealed they are not looking for a high-end luxury home. 

Most popular price points at which surveyed consumers stated that luxury housing begins, by U.S. regions:

  • Northeast (ME, VT, NH, NY, NJ, MA, CT, RI, MD, DE, PA)

$1 million +

  • Pacific (CA, OR, WA, AK, HI)

$1 million +

  • Mountain (MT, ID, WY, CO, UT, NV, AZ, NM)

$1 million +

  • South Central (AL, MS, TN, AR, LA, TX, OK)

$500,000 +

  • North Central (KY, OH, IN, IL, MI, WI, MN, IA, NE, KS, ND, SD)

$500,000 +

  • South Atlantic (VA, WV, NC, SC, GA, FL)

$500,000 +

"The luxury homebuyer is an important contingent of today's real estate market, as luxury homes tend to drive trends throughout the entire balance of the marketplace," said Barbara O'Connor, chief marketing officer for Move, Inc. "We are seeing large portions of buyers throughout the country – from 23 percent in the Northeast region and 23 percent in the South Atlantic – eyeing luxury homes. This means sellers, builders, and certainly REALTORS® should all pay particular attention to desired luxury amenities such as chef-quality kitchens and master suite features to close deals for them."

Of the survey respondents who are currently looking for a luxury home:

  • Most popular reasons high-end buyers started their luxury home search:
    • 19% said recent career success prompted their luxury home search;
    • 17% entered the market because they recently retired;                              
    • 14% got into the market as an investment; and                              
    • 12% entered the market to buy their first home.  
                                
  • Biggest challenges of searching for a high-end luxury home:
    • 40% of luxury buyers cited finding a property that meets their family's needs
    • 20% shared their biggest challenge is the limited number of properties offered;          
    • 11% tout ultra-unique properties with limited universal appeal; and
    • 8% are challenged by gaining access to mortgage loans.
  • Most important home features when considering a luxury purchase:
    • 54% of luxury buyers indicated a chef's kitchen as an important feature;
    • 44% consider the home's views of oceans, mountains or cityscapes as significant;
    • 38% responded that the square footage of the property is a key attribute; and
    • 36% included the presence of an expansive master suite as an important factor.
  • Importance of resale value to those in the market for a luxury home:
    • 35% indicated it is very important;                                      
    • 29% shared it is neither important or unimportant;
    • 27% of luxury buyers said resale value is extremely important; and         
    • 8% consider resale value to be unimportant.     
  • Regional breakdown of current luxury home buyers' locations:
    • 23% South Atlantic (VA, WV, NC, SC, GA, FL);
    • 23% Northeast (ME, VT, NH, NY, NJ, MA, CT, RI, MD, DE, PA);
    • 18% North Central (KY, OH, IN, IL, MI, WI, MN, IA, NE, KS, ND, SD);
    • 15% Pacific (CA, OR, WA, AK, HI);
    • 14% South Central (AL, MS, TN, AR, LA, TX, OK); and
    • 7% Mountain (MT, ID, WY, CO, UT, NV, AZ, NM).

Of the survey respondents who are NOT in the market for a luxury home:

  • If respondents had an extra million dollars to invest in a home, they would use it in the following ways:
    • 28% would sell their current home and purchase a new one;      
    • 23% would keep their current home and purchase either a new or vacation home;
    • 14% would purchase several homes; and                                                 
    • 14% would buy their first home.             
          
  • If respondents were in the market for a luxury home, they indicated the following priorities for their property search would be:
    • 55% desired a view;                          
    • 45% fancied a chef's kitchen;         
    • 32% want an outdoor living area (outdoor kitchen, living room, fire pit, bar); and
    • 29% wished for a luxury pool (infinity, grotto, water slide).
                                            
  • If these respondents were in the market for a luxury home, their most desirable locales for purchase would be:
    • 37% would buy a waterfront property;
    • 19% prefer a countryside property;
    • 14% would choose a mountainside property; and
    • 13% desire a suburban property.
  • The respondents not currently in the market for a luxury home indicated that their top stylistic preferences would be:
    • 13% - a traditional home;
    • 13% - a contemporary home;
    • 11% - a coastal home; and
    • 11% - a modern home.

For complete survey results including: complete amenity priorities of the luxury buyer, consumer willingness to break budgets, reasons for current home shopping or perceived market-by-market ranking for luxury real estate, please contact Lexie Puckett at 805-557-3151 or Lexie.Puckett@move.com

Supporting Resources

ABOUT realtor.com®

Operated by Move, Inc., (MOVE), realtor.com® helps connect people with the content, tools and expertise they need to find their perfect home. As the official website of the National Association of REALTORS®, realtor.com® empowers consumers to make the smartest decisions when it comes to finding a home by leveraging direct connections with more than 800 MLSs to deliver the most accurate and up-to-date listing information in neighborhoods across the country, and by making timely and meaningful connections between consumers and REALTORS®. Whether through desktop, mobile, or tablet versions, realtor.com® is where home happens.

ABOUT MOVE, INC.

Move, Inc. (MOVE), the leader in online real estate, operates:  realtor.com®, the official website of the National Association of REALTORS®; Move.com, a leading destination for new homes and rental listings, moving, home and garden, and home finance; ListHub™, the leading syndicator of real estate listings; Moving.com™; SeniorHousingNet; SocialBios; Doorsteps®; TigerLead®; Top Producer® Systems and FiveStreet. Move, Inc. is based in San Jose, California.

Forward-Looking Statements

This news release may contain forward-looking statements, including information about management's view of Move's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different from those expressed or implied in such statements. These risk factors and others are included from time to time in documents Move files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Move's future results. The forward-looking statements included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

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