The Institute for Luxury Home Marketing released their March 2022 Luxury Market Report. Click Here to download the full report which covers the luxury real estate market in North America. Below we highlight some key takeaways from the report that we feel are important to our clients!
"In a recent report released by Coldwell Banker Global Luxury (CBGL) they shared the staggering percentage growth of global wealth in 2021 and, more significantly, the number of individuals who are now classified as high net worth (HNW) - those with over $5 million in net worth. CBGL commissioned Wealth-X to research the growth of wealth globally during 2021 and while their results led to an expected annual percentage increase, of more significance was the rate that it had increased. This nearly unbelievable increase had been unpredictable, even as little as three months prior to the end of 2021, until Wealth-X finally assimilated the data in January 2022. For the most part, the growth of wealth has steadily risen over the last 10 years, but the results were truly unprecedented for 2021. The volume of wealth increased by 2.1% in 2020 compared to 2019, but in 2021, it grew a staggering 20.4% compared to 2020."
"'This extraordinary wealthy population growth led to a real estate expansion like we’ve never seen before. A new map for luxury opened up new locations and multiple home ownerships in greater numbers. Home as safe haven became the rallying cry for our time' reports Michael Altneu, Vice President, Coldwell Banker Global Luxury".
"As the number of wealthy increased over the last 18 months, coupled with the new lifestyle choice of ‘home’ being one of the most crucial requirements in a portfolio, the exponential increase in demand for luxury real estate instantly becomes clearer. According to Wealth-X, HNW home ownership between 2019 and 2021 increased 180.1% for homes valued at $1 – 5 million and 102.4% for homes valued above $5 million. In the U.S., ownership of a luxury property above $1 million is now at 85% for HNW individuals, but even more enlightening is their propensity for multiple home ownerships; with 70% of HNW owning at least two properties, and 46% of them owning three or more."
See below the 13 month market trends for North American Luxury listings.
Below are the stats of the single family homes monthly review:
Did you know Carl Johnson Real Estate provides a variety of resources to our clients and friends. Click Here to read about some important points we make in an article by Carl about home foundations.