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The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets

The potential market for luxury property has never been bigger.

In the Luxury Portfolio most recent research report, The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets, we explore the current state of the second home market, as it relates to the affluent consumer, focusing on the top 10% and above income earners in 26 countries, who are in the market to buy or sell a second or vacation home in the next three years.

A Quest for Meaning

Luxury is Transforming (From the Top Down)

The high-end of the global real estate market is driven by savvy, affluent consumers who have learned to thrive in today’s new, post-recession reality.

The luxury industry itself has undergone a transformation and today, details that separate elite brands from one another are under intense scrutiny. This reality, marked by evergrowing bank accounts for the wealthy, supreme integration of technology and user experience, and a perceived lack of freshness, has created opportunity. Specifically it has opened the door for an emergence of disruptive brands to meet
consumer needs with distinct offerings such as luxury homes by-the-night via Airbnb or Black Cars on-demand via Uber. At the same time, the emergence of private label brands, ranging from the indulgent Neiman Marcus cashmere collection, to the commonplace Whole Foods 365 brand are changing the way people evaluate how, where, and when to spend. Together, these trends are enabling today’s affluent consumer to have choices in all facets of their lives, that are plentiful, well-executed, and at times, available at a better value than traditional luxury brands have been.

QUALITY IS NOT ENOUGH ...

Moving Up to a Luxury Home Now is the Time

Moving-Up to a Luxury Home? Now’s the Time!

If your house no longer fits your needs and you are planning on buying a luxury home, now is a great time to do so! We recently shared data from Trulia’s Market Mismatch Study which showed that in today’s premium home market, buyers are in control.

The inventory of homes for sale in the luxury market far exceeds those searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer which can eventually lead to a price change.

Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call your house their new home.

The sale of your starter or trade-up house will aid in coming up with a larger down payment for your new luxury home. Even a 5% down payment on a million-dollar home is $50,000.

But not all who are buying luxury properties have a home to sell first.

In a Washington Post article, Daryl Judy, an associate broker with Washington Fine Properties, gave some insight into what many millennials are choosing to do:

“Some high-earning millennials save money until they are in their early 30s to buy a place and just skip over that starter-home phase. They’ll stay in an apartment until they can afford to pay for the place they want.”

Dreaming of a Luxury Home?

 

Dreaming of a Luxury Home? Now’s the Time!

Recently, the Institute for Luxury Home Marketing released its Luxury Market Report which showed that in today’s premium home market, buyers are in control.

The inventory of homes for sale in the luxury market far exceeds the number of people searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer or can be found at a discount.

Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call their house their new home.

The sale of your starter or trade-up house will help you come up with a larger down payment for your new luxury home. Even a 5% down payment on a million-dollar home is $50,000.

But not all who are buying luxury properties have a home to sell first.

A recent Bloomberg article gave some insight into what many millennials are choosing to do:

“A new generation of affluent homebuyers powered by a surge in inherited wealth is driving the luxury-home market, demanding larger spaces and fancier finishes, according to a report heralding ‘the rise of the new aristocracy.’”

The Practical Explorers

The Practical Explorers - Wealthy Homebuyer Profile #1

PRACTICAL EXPLORERS want to feel like they are making a smart decision. They have earned significant wealth, and have a relatively long experience with affluence, which makes them diligent shoppers who tend to find a product/brand they like and stick with it.
Their passions focus on family friendly activities and promoting personal well-being. Luxury is not central to their lifestyle.

The Meaning Seekers

The Meaning Seekers - Wealthy Homebuyer Profile #2

MEANING SEEKERS need to see themselves in the purchase. The purchase should reflect who they are, and their commitment to
producing longterm good. Their passion reflects a desire to better
understand the world they live in, and to improve themselves through experience and education.

The Power Players

The Meaning Seekers - Wealthy Homebuyer Profile #2

POWER PLAYERS need to feel victorious. They are competing with their peers in a race for luxurious living. Their life tenet is being happy, fulfilled and adding quality in everything they do. Their passions accentuate their luxury lifestyle.

Ready to Explore Your Next Adventure?

Luxury in Sun Valley is the newest Luxury Real Estate team in town. You can find us at either premier Windermere location on Main St in Ketchum & Hailey.

Call us, Or Fill out the form >
Anna Mathieu (208) 309-1329
Michelle Sabina (503) 758-9163

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