GLOBAL LUXURY MARKET UPDATE - March 2024

Welcome to the Luxury Market Report, your guide to luxury real estate market data and trends for North America. Produced monthly by The Institute for Luxury Home Marketing and brought to you by Carl Johnson Real Estate, this report provides an in-depth look at the top residential markets across the United States and Canada.

The last four months have seen a subtle change in the luxury real estate market.

While the affluent tend to be less impacted by outside influences, concerns over the financial market and economic variables did see buyers take a long pause and the market stagnate during most of 2023. Falling inventory, especially new listings entering the market and, even more specifically, a lack of home types in high demand, also resulted in a decline in the volume of sales.

In recent months, there has been a quiet optimism building as the increase in new inventory entering the market has opened more opportunities for buyers. In turn, this has resulted in an uptick in sales. The data for February 2024 indicates there is positive movement with respect to sales. Compared to February 2023, the number of new listings entering the market increased by 41.4% for single-family homes and 46.4% for attached homes, but of more significance is that the number of sales also increased in both markets by 23.5% and 18.5%, respectively.

​The reality is that except for the locations where the buying frenzy caused both price increases and continued sales growth to become unsustainable, luxury home purchases are once again seeing higher transaction levels across many markets. The continuation of this upward trend is one that heralds the return of seller confidence and buyer demand as we enter the spring market.

Property Types in Demand
Demand for very specific property types will also bring change to the luxury market, as the wealthy not only seek the right location but also homes with amenities that equally meet their practical needs and “must-have” requirements.

One trend that was on the uptick prior to the arrival of the pandemic was the demand for hotel style living in private residences, and according to Coldwell Banker Global Luxury’s Trend Report 2024, we should expect to see the demand for branded residences return.

They predict that these residences will dominate the high-end home market as the affluent seek not just the best white-glove service but also the opportunity to enjoy ‘experiences'—and they are willing to pay top dollar. Expect to see growth in the multi-generational home. New builds are being designed to cater to extended families, whether it be multiple master suites, separate living spaces, or even additional homes on the property.

That is not to say the trend is all about bigger. As people recognize they are happy to return to smaller footprints, particularly those heading towards metropolitan lifestyles, health and wellness are still top of mind. Instead, it is the use of space to promote physical and mental well-being that has become appreciated in an entirely new way.

Amenities in Demand
While the obvious, such as access to amenities like gyms, yoga studios, and spas, is important, it is the demand for sustainability and smart homes that is truly on the rise. Luxury homes, apartment buildings, and townhouse complexes are turning towards sustainable living options. This is not just for new builds, as many properties have gone through extensive renovations to provide for this demand.

Using smart home technology has helped to facilitate changing these environments with fully automated systems that control not just entertainment and security systems but lighting, temperature, air quality, and water conservation. Privacy and security also remain highly important to the affluent, and there has been a notable increase in advanced security systems being implemented, as well as demand for properties that offer privacy and seclusion, whether branded residences or private homesteads.

As we navigate through 2024, the high-end real estate market presents a landscape of opportunity tempered by challenges. As always, we highly recommend working with a luxury property specialist during this unconventional market to ascertain what is truly happening in your local marketplace. Navigating the art of selling and buying in this market needs a critical and analytical approach; understanding the realities and setting expectations accordingly will ensure that goals are achieved.
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Did you know that Carl Johnson is certified as an Institute for Luxury Home Marketing Specialist, CLHMS, which means he offers superior knowledge and experience in the luxury market? His CLHMS membership also provides him with access to an elite network of contacts and resources that help to find you your dream home from Swansboro to Beaufort and beyond.

If you have a Luxury listing, use the most up-to-date marketing strategies for the market. Carl will position your listing ahead of the market curve. 

​Call 919-880-0904 for a consultation or CLICK HERE.