Connecting our Clients to the Lifestyle of their Dreams – ALLURE OF THE SECOND HOME: WHY AFFLUENT BUYERS ARE DISPLAYING CONFIDENCE IN RESORT MARKETS

The potential market for luxury property has never been bigger.

In our most recent research report, The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets, we explore the current state of the second home market, as it relates to the affluent consumer, focusing on the top 10% and above income earners in 26 countries, who are in the market to buy or sell a second or vacation home in the next three years.

Who is Considering Buying and Selling?

Buyers, age 40 and younger, are taking over the luxury second home market, but lack the experience of Gen X and Boomers

Luxury second home buyers and sellers have similar demographic profiles in terms of age, geography, education and professional status. As a result, their financial profiles are similar, with the only noticeable difference being that sellers have slightly higher asset levels.

Interestingly, this group has notably high assets for their age. About half of the qualified consumer market is under the age of 40, yet their aspirations for purchase are in the millions of dollars.

For most, this is not their first time purchasing a second home—the average number of residences is over three and 14% own at least five residences currently. Driven not by the Millennial group, but rather by Gen X and Boomers. Of Gen X luxury second home buyers, 17% have more than five homes, along with 19% of Boomers in this buyer group.

Current State of the Resort and Second Home Market

Affluent consumers are in acquisition mode

Those who are in the market to purchase a luxury second home are adding to their portfolio and unlikely to sell their existing second home at the moment—thus there are more buyers than sellers. Interestingly too, this means that sellers are also buyers, but buyers are not necessarily sellers.

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Buyers show more confidence in the market than sellers. More than half of buyers believe that now is a good time to purchase a second home, while relatively few think it is a good time to sell. As noted previously, these consumers are quite savvy when it comes to homeownership; 76% own two or more properties currently.

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What are Second-Home Buyers Looking for?

Wellness is the New Luxury

Affluent consumers have begun living with wellness in mind and this also influences the second home market. In fact, 96% take at least one aspect of wellness seriously as part of their daily routine. Beyond physical and emotional wellness, which most affluent consumers focus on, luxury buyers are keen to improve their intellectual, social and even spiritual wellness.

Amenities that address these needs are sought by buyers and especially resort and second home buyers because of a growing demand for communities that take a holistic approach to overall wellness.

The Bottom Line

With more buyers than sellers, the demand for second homes is keeping home values high for luxury properties. Younger buyers are becoming more prominent, currently making up nearly half of the market, however, older generations have more experience buying second homes. Multiple residences, as well as customized experiences, including wellness amenities becoming a priority.

Would you like more information – just reach out and let’s chat:  214.769.2142

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Want To Sell or Buy a Luxury Home?

If you have a home that you would like to sell for $750,000 or more, then it is considered a Luxury Home. It is critical that you use a qualified Ebby Halliday Realtor agent that is specialized in this kind of sale. The LOPEZ Group partners with Luxury Portfolio International, a website that presents a gallery of the finest luxury properties and brokerages worldwide. “This group collectively has decades of experience in the high-end luxury real estate market.” Luxury Portfolio offers extensive search engines and social media strategies to make sure your listing gets noticed! They also utilize international websites such as www.juwai.com and www.wallstreetjournal.com.

Clients wanting to purchase a Luxury Home are able to find many listings from all over the world by using Luxury Portfolio International. The LOPEZ Group has listings and below are some of our favorites! Just click on the link above to find additional listings from our group.

If you are considering listing your Luxury Home or if you are in the market to purchase a Luxury Home, then let The LOPEZ Group help you! We are qualified and knowledgeable on these types of transactions. We can help you step-by -step through the whole process. Contact us today at 214.769.2142.

The LOPEZ Group

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Global & Luxurious

At The LOPEZ Group, we love to follow international markets as well as our local real estate market. The website Luxury Portfolio International recently published an article called Market Pulse that highlights some of the most luxurious real estate in the hottest markets around the world. There is currently information on New York City, Washington, D.C. and London and more will be published in the coming months. It will show you the highest recorded sale in the month 12 months (For example $42 million dollars in New York City!), prices compared to last year, the price point for the top 10% of inventory, where international buyers are coming from and what they are looking for. Definitely stay tuned to learn more from other global markets!

Did you know that Ebby Halliday, Realtors is the official North Texas member of the Luxury Portfolio International? “Luxury Portfolio International® is the luxury face of Leading Real Estate Companies of the World®, the largest global network of premier locally branded companies dominated by many of the world’s most powerful independent luxury brokerages.” Basically, if you are wanting to buy or sell a property outside of our local market, we have connections all around the globe that we can set you up with.

If you have any questions regarding Luxury Portfolio, don’t hesitate to contact us at 214.769.2142 so I can talk you through it.

Cynthia and Diego Lopez | LOPEZ Group, Ebby Halliday Realtors