The Report Explores Current Trends Shaping Real Estate and Lifestyle Across the Globe
IRVINE, Calif., September 27, 2021--(BUSINESS WIRE)--Berkshire Hathaway HomeServices, a global residential real estate brokerage franchise network, recently released an extensive luxury landscape report: The Berkshire Hathaway HomeServices 2021 Luxury Landscape Report. The report covers the pandemic’s impact on consumer behaviors in regards to the automotive, yachting, artwork and private jet markets, as well as real estate.
The Luxury Landscape report visits the heated market in Miami, Florida, where domestic buyers have taken the place of international buyers across Miami’s high-end market. Destinations that were once second home ski resorts, like Park City, Utah and Sun Valley, Idaho, have now become year-round. The report also covers the growing trend of sustainability, the rise of NFTs, and the future of electric cars.
"The luxury real estate market has showed tremendous strength through an ever-changing year despite fears that the challenges brought on by the pandemic would negatively affect the market," said Christy Budnick, CEO of Berkshire Hathaway HomeServices. "With this timely data, our network Luxury Collection Specialists can prepare for what’s to come in 2022 and continue to provide the exceptional level of service and knowledge to clients and customers globally."
One of the big reveals is the top luxury markets, as luxury home buyers return to bustling cities for the culture they missed during the pandemic. The top luxury markets identified include:
London: The pandemic fog that has cast its shadow over has begun to lift with, with sales of high-end homes up during the first quarter of 2021. The luxury market in London includes homes priced from £3 million to £10 million. Private outdoor space is also more in demand than ever in London.
New York: New York’s real estate market is awakening, and the luxury sector is part of that revitalization. the luxury market appears to be rebounding with a return of international investors and buyers seeking value. Buyers looking for bargains will find the most value now on the Upper East Side.
Montecito: With easy access to San Francisco and Los Angeles, buyers are turning their attention to second and third homes in Montecito, California. In 2020, the median sales price was US$2.8 million and in 2021 it has increased to US$5.3 million. The main reason for the jump is the majority of activity in the market has been for big houses that range from 7,000 to 25,000 square feet.
Park City: Utah’s economy has been growing and the state has attracted more high-end buyers in the last few years. Ultra-luxury homes on several acres are selling in the US$8 million to US$15 million range. Like many markets, Park City has extremely low inventory because of the high demand over the past year. But new construction will expand the options in the area, including a new resort next to Dear Valley Resort, where Extell Development plans to build a resort with condos and single-family homes.
Atlanta: Atlanta’s luxury market is much more attainable than other major U.S. cities. The market has seen a 32% increase in sales of homes priced above US$1 million year-over-year, lending credence to the term "Hotlanta." Former New York residents are the biggest percentage of relocation buyers, along with buyers from Miami, Chicago and California.
Miami: Domestic buyers have taken the place of international buyers across Miami’s high-end market. Not only are single-family homes and condos selling quickly, but home values are also rising rapidly as the state is flooded with new residents looking for more space and lower taxes.
Toronto: More wealth is being created in Toronto by the tech industry and large corporations moving there. The average sales price in the city was C$1.2 million in May 2021, an increase of 28.4% compared with May 2020. The city expects anticipated continued price appreciation, increased sales and a strong luxury market for the coming year.
Marbella: As international buyers return to Marbella, the market for high-end homes is expected to become even more competitive. While Marbella was once known for its buyers from the Middle East, Russia and the U.K., now more buyers come from Scandinavia countries and Eastern Europe. The most resilient part of the market in 2020 and 2021 has been large villas and condos priced around £3 million to £4 million.
Boston/Cape Cod: Cape Cod and Massachusetts’ South Coast both appeal to those working more from home. The south coast is a bit of a hidden gem. The threshold of luxury homes used to be US$1 million and up, but now the threshold is closer to US$2 million and up. The median price increase for homes priced above US$1 million was 7% between the first quarter of 2020 and the first quarter of 2021.
Berkshire Hathaway HomeServices is also hosting an exclusive event with The Wall Street Journal, Mansion Global, following the release of the luxury report. Exploring the Luxury Landscape features Christy Budnick and other industry experts discussing the state of the housing market and wealth trends around the world. The event will take place on September 28 at 1:30 p.m. EDT. The event is open to all, and individuals can register here. The virtual event will cover the following topics:
The migration toward second homes around the world
Areas across the globe offering strong opportunities for investment
Trends in art collection, including the rising popularity of NFTs
The future for electric vehicles
The return to high-end travel, such as yachts and private aviation
View the full report: https://www.bhhs.com/luxury-collection
About Berkshire Hathaway HomeServices
Berkshire Hathaway HomeServices is a global residential real estate brokerage franchise network with more than 50,000 real estate professionals and nearly 1,500 offices throughout the U.S., Canada, Mexico, Europe, the Middle East, India and the Bahamas. In 2020, the Berkshire Hathaway HomeServices global network represented more than $138 billion in real estate sales volume. The network, among the few organizations entrusted to use the world-renowned Berkshire Hathaway name, brings to the real estate market a definitive mark of trust, integrity, stability, and longevity.
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