Sotheby’s International Realty 2022 Luxury Outlook Report Reveals Global Trends
Earlier this year, Sotheby’s International Realty announced the release of its 2022 Luxury Outlook report, which identifies trends likely to shape the global housing market over the coming year and helps buyers and sellers make decisions. enlightened. In the high-end real estate sector, the periodic start-and-stop effect of the pandemic has exacerbated already high demand in areas like Colorado’s resort markets, leading to housing shortages. stocks and record real estate figures in 2021.
Among the report’s many revelations, the lure of a hybrid work model in coveted communities, such as Colorado’s mountain towns, has driven buyers in droves to areas like the Vail Valley. Once there, consumers sought out real estate as an investment and favored larger homes that could accommodate remote work desks and reasonable commute times. The global report also reveals that a plateau in the market surge is unlikely to occur as quickly as consumers would like, with property prices expected to continue to rise until 2022.
Released in February, the Resort 2022 report produced by LIV Sotheby’s International Realty (LIV SIR) revealed data that supports the findings of the 2022 Luxury Outlook report. The world-renowned Vail Valley has seen the historic surge in demand and prices as noted in the Resort and Luxury Outlook report, with homes selling 23.9% more than the previous year , pushing the average sale price from $1,570,475 to $1,946,595 in 2021. As average sale prices increased from West Vail to Edwards, the average days on market decreased by 38.6% , from 114 days in 2020 to 70 in 2021.
While a world unto itself, the Vail Valley is only a partial representative of the global real estate trends seen in 2021 and predicted for 2022 by surveying Sotheby’s International Realty agents around the world worldwide who transact in the price category of more than 10 million US dollars. This information has been supplemented with additional data from UBS Wealth Management; Henley & Partners, a global citizenship and residency advisory firm; the National Association of Estate Agents; in addition to art and luxury experts from Sotheby’s, the famous auction house, to complete the luxury trends of the coming year.
Key findings of the report include:
- 2022 will likely be the year of the international shopper as borders open and vaccinations and boosters roll out
- Nearly half of respondents agree that a rise in interest rates could affect the market
- In North America, millennials and Gen Xers are expected to make up the majority of luxury home buyers in the coming year
- Between 2018 and 2042, nearly US$70 trillion will be passed on to older generations, and millennials will continue to use their share for real estate, according to Cerulli Associates.
- In the United States, second home price appreciation is expected to continue even after the number of transactions slows due to limited inventory
- The most important amenities for today’s luxury buyers are a garage with storage, a first floor full bathroom, a kitchen with dining area and a luxury master bedroom.