The pandemic has deterred many homebuyers from pursuing their property search because the time doesn’t seem right. With economic turbulence shaking up the real estate market and a health crisis gripping the country, it feels insensible and insensitive to build a new home.
However, instability in the stock market is paving the way for the real estate industry. How are the two linked?
Fall of Stocks – The Rise of Real Estate
Luxury buyers want to invest their money in secure assets as a hedge against inflationary pressures and an impending recession. But their confidence in the stock market is shrinking due to economic volatility. Trading their investment for equities or other financial securities, like stocks, bonds, currencies, and commodities, seems futile since pandemic rocked stock markets across the world.
The containment of the working population has left a huge economic impact on several sectors and is taking a toll on the stock market as well. This has made numerous stock investors apprehensive about the whole situation and fearful of their assets’ financial value. This is a classic case of one man’s loss, another man’s gain. Stockholders are now turning to the housing market to secure their investments. Online searches for luxury homes went up by 7.3 percent in May this year, compared to May 2019.
They’re mainly looking at luxury homes with a solid foundation and permanent fixtures attached to the estate. They need a property that’s more than a well-appointed estate in a high-end neighborhood. The new place should offer a lifestyle upgrade, doused with opulence and extravagance. Since staying at home seems like a long-term solution, not just an interim option, luxury real estate buyers wish to upgrade their living conditions to meet the challenges of being completely home-bound.
Here are some ways you can define luxury in real estate and how they affect property prices.
Locations have traditionally been the first marker of luxury real estate. Prominent addresses, elite neighborhoods, and ZIP codes have an exclusive market in the real estate industry. High-net-worth-individuals (HNWIs) are looking into luxury areas that boast of lifestyle offerings that they’re looking for. They’re willing to pay generous premiums to live in localities that will help them subscribe to high society.
However, this definition of luxury homes is expanding to include developing areas that promise modern amenities. Affluent international buyers are also showing interest in investing in such property options.
Wealthy buyers wish to invest in a home that dispels positivity in their residential area. The demand for sustainable living options is plummeting due to luxury homebuyers who want to create a safe and healthy environment.
From energy-efficient architectures to sustainable interior designs, luxury homes that offer conscious living conditions become a top choice. Discerning buyers value thoughtful architectural designs and an insightful vision for the future. This is why they want to choose their home locations accordingly and switch to environmentally-conscious construction materials.
They also wish to invest in cultural offerings and learn about communal values, to become part of a culturally elite society. They prefer neighborhoods that are close-knit and active in societal events and share similar values.
Experiences; Not Accessories
The generation of Baby Boomers is retiring with generous retirement funds sitting in their bank accounts – this makes them the wealthiest homebuyers in the market. But through time and age, this generation has outgrown its materialistic fondness. They don’t wish to invest in oriental carpets or luxury interiors as much as traveling to oriental holiday destinations and finding comfort in experiences.
Their definition of luxurious living goes beyond ownership of wealthy homes. They want to invest in architecture made with an artistic inspiration or choose hand-picked furniture pieces from a vintage Victorian English collection. Their buying decisions are geared toward making their family life more meaningful.
In a quest to make living profound, they’re looking for luxury homes that can fulfill that desire with something unique for their taste. Proximity to cultural centers, libraries, natural landscapes, and meditation spas can be a big plus for such home buyers.
Convenience And Comfort
As millennial children are maturing into young adults and making a life for themselves, their Boomer parents are left as empty nesters. Signs of age have begun to show, and that’s why they are seeking housing options that offer comfort in old age. People who had always preferred suburban localities are flocking towards urban areas.
Modern innovation has made life supremely convenient—from providing electric blankets to automatic blinds. The slightest convenience can make a big difference in your living conditions when you’re 70 or older. You can avail those comforts by moving into a luxury home that comes complete with such luxuries. And with big cities being the epicenter of technological progress, it only makes sense that the aging population would want a house there.
But finding an estate that’s appropriate for your needs and fits your requirements can be tough. Not to mention, your age wouldn’t make it easier to go through the hassle alone. It’s easier to hire real estate brokerage services where a realtor would look after everything and shortlist housing options. All you have to do is look at the property before finalizing and signing the deed.
Phillip Fehler has helped many luxury buyers find the perfect property for investment. He has expertise in the local real estate market and years of experience to his name. Entrust him with your requirements, and he won’t disappoint.
Why Hire A Realtor?
We’ve established that home buyers searching for luxury homes have a wider range of finances to spare. Since you’re looking for homes that would suffice modern luxury standards, you can hire a real estate agent to assist you.
Finding a house in an ideal location for the best price and sealing the deal on it is long and exhausting. Seeing that many luxury property investors are older residents, they can’t make multiple trips to the site or run around looking for property options. It’s easier to appoint a real estate agent to handle all the chores so that all you have to do is transfer funds at the time of payment.
Luxury property listings may be superior to low-budget estates but come with hidden foundation damages and structural defects. While the options may look appealing on the outside, they may have glaring faults that a first-time buyer might overlook. That can cost you thousands of dollars later – it’s best to identify them before buying.
Investing in a home is a crucial financial decision that you’ll probably make once in your lifetime. It’s better to consult with a real estate expert who can look into the specifics of real estate and assess the property value professionally.
Phillip Fehler is a leading realtor at Fathom Realty. The reviews on our website speak for the trust and appreciation that he has garnered through his services for the local residential community. After living in North Carolina for 20 years, he has adequate insight into the real estate market in Fayetteville and can evaluate property listings professionally.