Despite recent unfavorable economic factors such as high inflation, rising interest rates, and stock indexes, experts predict demand for luxury real estate will continue for the remainder of 2022 and into 2023 according to the new 2022 Mid-Year Luxury Trends Report recently released by Christie’s International Real Estate.
Some trends driving the luxury real estate market, as outlined by the report, include luxury real estate’s appeal as an investment against inflation for investors, primary home buyers, and second-home buyers. In addition, luxury real estate continues to attract high-net-worth buyers for long-term investments. Sellers may also be looking for a luxury home of similar value as property values have greatly increased over the last years.
“The strength of luxury real estate around the world in the first half of 2022 took a lot of observers by surprise. But throughout our network – certainly not in every market, but in many – brokers are predicting a strong finish to the year with momentum carrying into next year,” said Thad Wong, co-CEO of Christie’s International Real Estate in the report.
Whether or not the luxury home market becomes a balanced or buyer’s market will depend on inventory levels and demand reports The Institute For Luxury Home Marketing in their recent Luxury Market Report for September 2022.