Real estate professionals interested in luxury real estate specialization might find that it’s a good time to do so.
Wealth is on the rise, reaching $8.5 trillion, and significant portions of that wealth are being inherited or transferred through real estate holdings. Data from The Institute for Luxury Home Marketing reveals that real estate was the only asset class to see a significant increase in high-net-worth asset allocation in from 2017 to 2018.
Bottom line: Agents entering the luxury real estate market now will have a larger client pool and larger budgets to work with.
Moreover, international buyers are ready to take the plunge. The institute reports that sales to international buyers totaled $121 billion from April 2017 to March 2018 with a total of 266,800 properties. About 72 percent of non-resident foreign buyers also purchase homes in cash and don’t have to wait for lender approvals.
Luxury real estate continues to be a growing segment of the real estate market, with the number of sales above $1 million increasing 6 percent in the last year. However, agents should be aware that these properties have longer selling times, more demanding clients, strong competition from other agents in the niche and greater transaction complexity.
Source: RISMedia (04/10/19) Hartley, Diane
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