Berkshire Hathaway HomeServices Releases 2021 Luxury Landscape Report
IRVINE, Calif .– (COMMERCIAL THREAD) –Berkshire Hathaway HomeServices, a global network of residential real estate brokerage franchises, recently released a detailed report on the luxury landscape: The 2021 Berkshire Hathaway HomeServices Luxury Landscape Report. The report covers the impact of the pandemic on consumer behaviors with respect to the automotive, yachting, works of art and private jet, and real estate markets.
The Luxury Landscape report visits the fiery Miami, Florida market where domestic buyers have replaced international buyers in the high-end Miami market. Destinations that were once secondary ski resorts, like Park City, Utah, and Sun Valley, Idaho, have now become accessible year-round. The report also covers the growing trend for sustainability, the rise of NFTs, and the future of electric cars.
“The luxury real estate market has shown tremendous strength in an ever-changing year despite fears that the challenges brought on by the pandemic will negatively affect the market,” said Christy Budnick, CEO from Berkshire Hathaway HomeServices. “With this current data, our network of luxury collection specialists can prepare for what will happen in 2022 and continue to provide an exceptional level of service and knowledge to clients and customers around the world. ”
One of the big revelations concerns major luxury markets, as luxury home buyers return to bustling cities for the culture they lacked during the pandemic. The main identified luxury markets include:
- London: The pandemic fog that has cast its shadow has started to dissipate, with sales of high-end homes increasing in the first quarter of 2021. The luxury market in London includes homes priced at £ 3million to £ 10million. Private outdoor space is also in greater demand than ever in London.
- New York: The New York real estate market is awakening and the luxury sector is participating in this revitalization. the luxury market appears to be rebounding with a return of international investors and buyers seeking value. Bargain shoppers will now find the best value on the Upper East Side.
- Montecito: With easy access to San Francisco and Los Angeles, buyers are looking to second and third homes in Montecito, California. In 2020, the median selling price was US $ 2.8 million and in 2021 it has increased to US $ 5.3 million. The main reason for this jump is that the majority of activity in the market is for large homes ranging from 7,000 to 25,000 square feet.
- Park city: Utah’s economy is growing, and the state has attracted more high-end buyers in recent years. Luxury homes on several acres sell for between $ 8 million and $ 15 million. Like many markets, Park City has extremely low inventories due to high demand over the past year. But new construction will expand options in the area, including a new complex next to Dear Valley Resort, where Extell Development plans to build a complex with condos and single-family homes.
- Atlanta: Atlanta’s luxury market is much more accessible than that of other major American cities. The market has seen a 32% increase in sales of homes priced above $ 1 million year-over-year, giving credence to the term “Hotlanta”. Former New York residents make up the largest percentage of relocation buyers, along with buyers from Miami, Chicago and California.
- Miami: Domestic buyers have replaced international buyers in Miami’s high-end market. Not only are single-family homes and condos selling fast, but home values are also rising rapidly as the state is inundated with new residents looking for more space and lower taxes.
- Toronto: More wealth is being created in Toronto by the tech industry and the big companies that set up shop there. The average selling price in the city was C $ 1.2 million in May 2021, an increase of 28.4% from May 2020. The city expects continued price appreciation, an increase sales and a strong luxury market for the coming year.
- Marbella: With the return of international buyers to Marbella, the high-end home market is expected to become even more competitive. While Marbella was once known for its buyers from the Middle East, Russia and the UK, more and more buyers are coming from countries in Scandinavia and Eastern Europe. The most resilient part of the market in 2020 and 2021 have been large villas and condos priced between £ 3-4million.
- Boston / Cape Cod: Cape Cod and the south coast of Massachusetts both appeal to those who work more from home. The south coast is a bit of a hidden gem. The threshold for luxury homes was previously US $ 1 million and above, but now the threshold is closer to US $ 2 million and above. The median price increase for homes priced above $ 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, after the luxury report was released. Explore 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 everyone and individuals can register here. The virtual event will cover the following topics:
Migration to second homes around the world
Areas around the world offering strong investment opportunities
Trends in art collection, including the growing popularity of NFTs
The future of electric vehicles
The return to high-end travel, such as yachts and private aviation
See the full report: https://www.bhhs.com/luxury-collection
About Berkshire Hathaway HomeServices
Berkshire Hathaway HomeServices is a global network of residential real estate brokerage franchises with over 50,000 real estate professionals and nearly 1,500 offices in the United States, Canada, Mexico, Europe, Middle East, India and the Bahamas. In 2020, the Berkshire Hathaway HomeServices global network accounted for more than $ 138 billion in real estate sales volume. The network, among the few organizations charged with using the world-renowned Berkshire Hathaway name, brings to the real estate market a definitive mark of trust, integrity, stability and longevity.