2022 will remain a seller’s market
2022 will remain a seller’s market, but the market will have fewer luxury buyers in the new year. The luxury real estate market has remained strong in both 2020 and 2021. Demand was outstripping supply. The number of affluent sellers interested in entering the market worldwide over the next three years will increase substantially.
Sellers will out number Luxury buyers
The luxury world will keep moving along at a quick pace into 2022 but it should also continue to stabilize. The difference will be there will be more luxury sellers in 2022 than buyers. Realtors forecasted the buyer will still have fewer choices and the luxury buyer is no different. Lack of inventory will keep the market a seller market.
Luxury Buyers Motivation
Luxury Portfolio International Interview high-end buyers and what was discovered about luxury buyers is there increased concern about having an environmentally sustainable home that will last for generations to come. The report also found the Fear of Missing out when trying to find that perfect home
Luxury buyer has adapted to the pandemic. In 2021 the trend was finding a home suitable to families working from home. Moving into 2022 the luxury buyer will be seeking a home that offers distinct spaces for working, entertaining, and relaxing.
Thirty-two percent of homeowners who have a luxury home plan to sell in the next three years. 6.4% million luxury homeowners are looking to buy a new home.
Long Term impact for Luxury Buyers and Sellers
The increased number of luxury sellers will help bring the market closer to equilibrium in 2022. In the last year, the total percentage of the global affluent interested in buying luxury real estate declined from 34% to 20%. At the same time, the percentage of affluent interested in selling luxury real estate has increased from 13% to 16%. Therefore it will remain a seller market, the gap between buyers and sellers is lessening significantly.
The demand across the globe the real estate is poised to increase among the affluent in 2022. The high net worth buyer has a high concentration of wealth however they are still concerned about economic growth and inflation. As a whole, though the outlook remains positive. Demand will remain strong and healthy and the new normal in luxury real estate will take shape in 2022. I always to buyers and sellers make a plan early. If you are not sure if you want to buy in Massachusetts or New Hampshire or further way just remember I have 24,000 global associates in 75+ countries where I can work with them to help you make a plan, curate the relationship and give you a personal introduction to the perfect agent who can find you the home of your dreams and you can contact me anytime during the process. So let’s talk and figure out what your next step will be in 2022