Up and out. These are the two general directions in which the luxury residential housing market appears to be heading in 2015, according to the latest Luxury Market Report published by Coldwell Banker Previews International®/NRT. The report tracks real estate trends and market activity in top luxury cities across the United States, as well as one of the world’s most expensive places to live — Monaco.
New in this edition of the Luxury Marketing Report, Previews® partnered with respected global research firm Ipsos MediaCT for the first time to better understand today’s high-net-worth (HNW) individuals (defined in the survey as those with over $5 million in net worth, although 42% of respondents reported a net worth over $10 million). Their outlook on residential real estate as a wealth asset class was overwhelmingly positive and many intriguing buying trends and preferences are revealed in the survey, which can be downloaded in its entirety here.
Here is a snapshot of what’s inside the Fall 2015 Luxury Market Report:
- $10 million+ home sales are up 43% across the nation. Closer to home, Southern California saw dramatic increases in the number of $10 million+ listings and sales in the first half of 2015. Watch CNBC’s Robert Frank exclusive coverage of the Luxury Market Report here.
- California dominates the Previews® Top 20: ZIP Codes and Cities for Luxury Sales and Listings — Southern California (Los Angeles and/or Beverly Hills) cracks the Top Five in nearly every category. Beverly Hills ranks #1 for Luxury Sales by Zip Code ($5,000,000-plus). As for Northern California, San Francisco, Atherton and San Jose lead the charge, but it was interesting to see Fremont in the Top Five (Luxury Sales by Zip Code | $1,000,000-plus).
- Think that millennials are reluctant to enter the housing market? Think again—69% of high-net-worth millennials are planning to purchase a new property in the coming year, according to a new survey by Coldwell Banker Previews International/NRT and Ipsos MediaCT. Get the complete insights here.
- Millennials are also leading the movement toward embracing a “live anywhere” lifestyle, a trend spotted in last year’s survey. This year, 85% of millennials say they are “free to choose a residence that truly fits my lifestyle and will not limit my search based on location,” a statement echoed by 69% of Gen Xers and only 29% of baby boomers.
- The wealthy want high-tech homes with green features. In addition to gauging market outlook and plans for real estate investing among HNWIs, the survey also ranks the features and amenities they most desire. What they want is a home that’s ready to move into, cited by 43% of the wealthy as more important than it was three years ago. They also want homes outfitted with modern appliances and technology, as well as the latest in “green” features.
- Monaco is worthy of the “International Spotlight.” If there was ever a question about Monaco’s position in the race to become one of the world’s most sought-after luxury addresses, the real estate numbers from 2014 have all but driven it out. From 2010 to 2014, the total number of real estate transactions increased by more than 69%. Residential sales soared to 555 in 2014 — a year that already went down in history as the tiny principality’s best year on record. The market exceeded the 2 billion euro benchmark for real estate transactions for the first time.
Want to get a more complete view of the high-end residential real estate landscape, city by city and demographic by demographic? View the full edition of the Luxury Market Report.