At Coldwell Banker Previews, we continually monitor & track trends within the luxury home market, and report those in our twice-annual Luxury Market Report. You can follow the link below to read the entire report, but here are the things I found to be interesting and worth highlighting!
Who Spends the Most?
The youngest group of wealthy home buyers are also the most aggressive, price-wise. Those aged under 35 plan to spend the most ($7.8M), with those between ages 35-44 next ($6.8M).
Location, Location, Location?
We’ve heard this line time and again – location is the most important thing in real estate. It’s becoming less so to the youngest, wealthiest buyers though. In a digital age where people can often work from anywhere, where a house is located has become less important than what it offers. Just 25% of wealthy buyers under the age of 35 chose location as a key deciding factor, choosing the lifestyle the home provides as their top search criteria (75%). Conversely, it remains very important for buyers over the age of 65 – with 86% stating it’s their #1 concern.
Eco-Friendly On The Rise
21% of wealthy buyers say they want to buy an eco-friendly home (up from 7% in 2013).
How Does Chicago Rank?
It’s tough for us to compete with markets like New York City, Los Angeles and San Francisco, but Chicago does rank 6th in the number of home sales above $1M (behind these cities as well as San Jose and Houston). The sheer volume of truly high-end home sales in Chicago has grown dramatically in the past year: In 2013, there were 53 homes sold above $3M; So far in 2014, there have been 72. Why the increase? The access to cheap money in jumbo loans has no doubt had an impact – but that is a blog post for another day (and coming soon!)