Long & Foster | Christie’s, exclusive affiliate in the Mid-Atlantic, provided expert commentary for new international report
After a year of tepid growth in 2016, sales of international luxury homes bounced back in 2017, posting the best annual growth rate in three years at 11 percent. Rising consumer confidence, low interest rates, a robust stock market and a stable global economy drove demand for luxury property last year, continuing into 2018, despite localized pockets of uncertainty that gave some buyers pause. The research is being unveiled in Luxury Defined, the just-released annual analysis of global luxury residential housing dynamics by Christie’s International Real Estate, the world’s leading expert on high-end real estate.
Worldwide sales of million-dollar-plus homes in primary housing markets were up 10 percent year-on-year, the strongest annual gains in this luxury housing cohort recorded in the previous three Luxury Defined reports. Sales volumes of second-home and resort lifestyle destinations grew by 19 percent, up from a seven percent annual decline in the prior year. Tech hubs posted gains—as did hidden luxury enclaves and reinvigorated cities.
The study further examined the growing popularity of vertical and penthouse living, with their appeal of on-site services and amenities; the purchasing tastes of both Boomers and Millenials; political and governmental influences on buying, plus a look at natural disasters in luxury markets and how they recover and endure. The state of trophy home sales over $100 million was discussed, as were international buying trends and “hottest” luxury markets worldwide.
Dan Conn, CEO of Christie’s International Real Estate, commented: “There are a number of tailwinds for the luxury residential real estate markets, including buoyant equity markets and a relatively stable global economy. Factors that dampen investor enthusiasm in other asset classes, such as equity market volatility – the first quarter VIX volatility index recorded its highest quarterly average since 2007 – support a flight to the safety of real assets. Political uncertainty has also led investors to diversify into this less volatile asset class. Christie’s International Real Estate’s global network of luxury residential experts advise property investors and sellers on how to navigate these challenges and the opportunities they create. As part of Christie’s art auction house, we are uniquely qualified to understand the shifts and trends impacting high value asset classes, from fine art to fine homes, alongside the motivations of the affluent individuals who purchase them.”
Now in its sixth year, the study synthesizes data from more than 80 brokerages worldwide, including Long & Foster | Christie’s, compiling observations of luxury drivers from on-the-ground experts to overarching insights from Christie’s International Real Estate executives.
Jeff Detwiler, president and CEO of The Long & Foster Companies, provided insight for two sections of the report. On page 15, he talks about trends in demographics of luxury buyers, focusing on Baby Boomers and Millennials. On page 31, Detwiler provided analysis about the new U.S. tax laws’ potential impact in the Washington, D.C., market.
Christie’s International Real Estate is wholly owned by Christie’s and is committed to its core values of expertise in marketing luxury assets, exemplary client service, trust and discretion. The Luxury Defined study can be accessed at christiesrealestate.com/luxury-defined.
To learn more about Long & Foster, visit www.LongandFoster.com.