We’re counting down the days to the new year — and the luxury real estate customer is no exception. All across the market, exciting opportunities are emerging to acquire one-of-a-kind properties.
We asked five luxury real estate experts to weigh in on what consumers will be looking for and what agents can expect as we enter 2019.“Looking ahead to 2019, I think we will see a continuation of a trend with luxury consumers that has manifested over the past several years: they clearly have the means to make significant discretionary purchases, and when there’s opportunity to make a real estate purchase that will enhance their lifestyle or provide opportunities to create family memories, then they can move decisively.”
Andrew ErnemannPast President and REALTOR® of the Year — Aspen Board of REALTORS®Broker Associate, Aspen Snowmass Sotheby’s International Realty
“Looking ahead to 2019, I think we will see a continuation of a trend with luxury consumers that has manifested over the past several years: they clearly have the means to make significant discretionary purchases, and when there’s opportunity to make a real estate purchase that will enhance their lifestyle or provide opportunities to create family memories, then they can move decisively.”
“As the world becomes more data-driven, the luxury consumer will become even savvier — and more demanding. They want the most up-to-date, most accurate information at their fingertips. At the same time, they want real insight and service — something that only people, not computers or apps, can provide.”
Faisal HalumChairman’s Circle — PlatinumBriggs Freeman Sotheby’s International Realty
“Our luxury consumers, now more than ever, have an expanding inventory, including never-before-seen legacy estates that are pushing the upper reaches of the luxury market. Fueled by an ever-growing technology sector, the maturing millennial consumer will be able to utilize their buying power to create a lasting impression on the market.”
Becky GraySenior Global Real Estate AdvisorRealogics Sotheby’s International Realty
Jeremy V. Stein
“In down markets, luxury buyers, rightfully, become less willing to compromise on everything from price to location. Accordingly, the sellers in fringe neighborhoods will have to be more flexible on price in 2019, while the buyers of properties in the city’s best locations will continue to pay close to top dollar. The luxury consumer will be more and more focused on tangible and durable value-add offerings like protected views, top-tier service, and ceiling height, and less likely to fall for gimmicks attached to property sales, whether they be on-site pet spas, golf simulators, or club memberships. ‘Location location location’ will be on the top of the luxury consumer’s mind.”
Jeremy V. SteinSenior Global Real Estate AdvisorCo-Founder of The Stein TeamSotheby’s International Realty
“The luxury consumer in 2019 will be more ready than ever to find their dream property. Expect them to be scrupulous and discerning about finding the right location, and patient when it comes to selecting the perfect property for their needs. As the market shifts this year, I expect that we will see properties that meet those expectations go quickly. Sellers that think that they can stretch their price will most likely be sold-around by better and more aggressive pricing within the market. Luxury sellers shouldn’t reach for the moon in terms of pricing in this market and should seek to sell at fair market value, within a pricing strategy of 60 days.”
David GemmeBroker Associate, Sierra Sotheby’s International Real EstateOwner of Gemme Group Inc.
Thanks to technology, today’s luxury real estate customers are extremely well-informed. They know what they want, they’ve been biding their time, and now they’re ready to buy. But while their smartphones may have helped them discover their dream homes, they’re counting on the insights and service of luxury real estate companies to help them close the deal.
About Sotheby’s International Realty Affiliates LLC
Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty® network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. Sotheby’s International Realty Affiliates LLC is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. The Sotheby’s International Realty network currently has more than 22,000 affiliated independent sales associates located in over 960 offices in 72 countries and territories worldwide. In 2017, the brand achieved a record global sales volume of $108 billion USD. Sotheby’s International Realty listings are marketed on the sothebysrealty.com global website. In addition to the referral opportunities and widened exposure generated from this source, each brokerage firm and its clients benefit from an association with the Sotheby’s auction house and worldwide Sotheby’s International Realty marketing programs. Each office is independently owned and operated.