Our resources at the Institute for Luxury Home Marketing have released their April 2022 monthly trend report, CLICK HERE to download the full report. The following is per the Institute for Luxury Home Marketing April 2022 Market Report:
Inventory continues to remain below traditional levels, even though there has been a slight increase in the number of new listings coming onto the market over the last few months. Comparing March 2022 to March 2021, there was an overall 8.17% decrease in luxury single-family inventory despite a 15.20% increase in new listings. Similarly, March 2022 saw a 25.16% year-over-year decrease in luxury attached inventory with a 10.22% increase in new inventory.
This spring has not seen a slowdown in the number of affluent homebuyers seeking luxury properties, as they still look for homes with more space and locations offering more affordable prices. Some are relocating permanently; others are buying vacation or co-ownership homes, and finally, others are looking for investment opportunities. Ultimately, the biggest obstacle for these buyers and a return to more normal seasonal patterns in the North American luxury home market is the continued shortage of homes for sale; a result of the buying frenzy that took place in the wake of pandemic lockdowns and home construction failing to keep pace with the demand. Out of this incredibly constrained market, we see the rise of innovation.
Affluent buyers, frustrated with the continued competition and price increases, are turning to outlying neighborhoods, and some are ready to take on fixer-upper properties.
Equally, investors who have a little more time on their hands or can live in another property avoid competition by considering properties that need work. Many buyers are risk-averse to dealing with the current building supplies and contractor issues, but the return on investment could be immense. One way to measure the return is to look at the value of new construction in the area – it will help to understand the opportunity to take on a project and renovate it into a turnkey property with similar amenities. Global supply chain delays continue to be a source of frustration to all those involved in the home-building industry, from high-powered developers all the way down to homeowners doing a simple renovation. To solve this frustration, some have turned to sourcing locally available materials for renovations and home builds. This is favorable because it breaks the supply chain issue, but it also helps with the environmental footprint. In addition, it has led to designs that are more visually in balance with their surroundings. Unconventional methods are also popping up, including recycling rescued framing from a demolished property to using natural resources such as rocks, timber, sand, and even recycled products that create unique structural and interior wall features.
Below are the stats for the 13 month market trends review.
Below are the monthly stats for your local luxury market reports of single-family homes.
Carl is certified as an Institute for Luxury Home Marketing Specialist, CLHMS. This designation means that Carl offers knowledge, experience, competence, and confidence for success in the luxury market to his buyers and sellers.
CLICK HERE to read more about Carl's experience in the industry and to get in touch with him today!