At the same time, luxury real estate is often set apart from the market at large. Although this distinction may hold water in many cases, many definable relationships still exist between the luxury housing sector and the remaining market share of the housing industry.
Bearing this in mind, let’s take a look at some trends that high-end sellers might expect to see in 2019.
Impacts from a Growing Inventory
In line with overall inventory trends of the general housing market, luxury real estate also endured several inventory limitations over the past year. Not to mention, the housing industry experienced significant ups-and-downs in 2018. Regardless of various restrictions seen last year, inventory in the luxury segment is once again on the rise in 2019.
Theoretically, such a rise in inventory should be beneficial for both buyers and sellers. However, the increased number of high-end homes on the market has had a sharp effect on price gains. In essence, prices are reaching a price-capped equilibrium as the surplus of luxury homes increases. Again, this trend more or less reveals the luxury home market is paralleling the greater housing market.
Then again, as experts in the sale of luxury homes, Luxury Estates Auction Company knows housing is locally defined. To put it differently, some markets simply outperform others time-and-again. For instance, the high-end housing markets in Tennessee, Colorado, and South Florida are all seeing significant price growth in their respective markets.
Meanwhile, apparent price deceleration continues throughout high-demand locations, like New Jersey and New York. Generally, this lag in price growth is an indicator of a declining market. However, market value forecasts continue to project stable growth at about 5%.
Across the globe, leading luxury real estate markets face looming uncertainty amid wide-spread political unrest and large-scale economic troubles. After all, the economic movements which led to hiked mortgage rates, an unprecedented federal tax code rewrite, stock market volatility, and rapidly increasing housing prices are not sure to be redirected any time soon.
In 2019, the luxury housing market looks to bring about a drastic reduction in velocity. Moreover, for a market segment which has been setting the bar for price growth and activity since 2017, the slower pace will be noticeable by buyers and sellers alike. Or, will it?
As Danielle Hale, Realtor.com's chief economist stated, "It's a different world at the end of the year than it was at the start of 2018."
At the End of the Day
No one can be sure how the luxury housing market will pan out in 2019. That said, seeking advice regarding aggressive marketing tactics and proven sales approaches is critical. The knowledgeable and experienced staff at Luxury Estates Auction Company is one of the leading luxury home sellers in the nation.
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