The Institute for Luxury Home Marketing’s latest Luxury Market Report is a guide to an analysis on the trends and comparative data on the top-residential markets throughout Canada and the United States.
February’s report reviews the current statistics for the luxury market in North America month-over-month, as well as the 13-month trend. The Institute also digs deeper into the growing influence of the Very High-Net Worth (VHNW), a demographic that was highlighted in the recent Wealth-X report “How Will the Wealthy Fare During 2020?”.
The VHNW cohort, whose net worth is valued between $5 million-$30 million, now command over 25 percent of all millionaires’ wealth. This group, in particular, has changed significantly in the last five years, being mainly compromised by a new generation of entrepreneurs and business leaders.
The most important difference for anyone looking to work or market to this group is understanding three key elements: They are still managing their own money; they tend to be younger (in mid-30s-40s); and are highly engaged in digital technology. Unlike the Ultra High-Net Worth cohort ($30 million-plus), this makes them more accessible.
That being said, it is still imperative to understand the buying trends of this demographic. Equally, it is important to recognize that shifts in their preferences undoubtedly has had, and will continue to have, a large impact on the future of the luxury real estate.
From changes in where these affluent homeowners are buying to understanding the impact of new tax laws, to why technology and well-being are part of the decision process, this month, The Institute examines how these preferences are reshaping the purchase of luxury homes.
For homeowners looking to sell their luxury home in today’s market, The Institute recommends working with a REALTOR® who can capitalize on the preferences of current investors. By carefully focusing on the lifestyle-specific niche your property offers, in line with trends, it can be marketed effectively to connect with the right potential buyers.
See the Institute’s full report.
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