The Demand for Luxury Real Estate Examined Over the last 2.5 years, the state of the luxury real estate market has become one of the hottest topics discussed in news outlets, multi-media platforms, and within the industry itself. Conversations initially focused on spiraling demand and rising prices.
This was soon followed by reports on the increasing demand for multi-faceted relocations and migrations. After which, the impact of falling inventory levels took prime spot. While these topics are still highly key in understanding the current market, the declining sales volume has become the most recent focus of attention by the media.
Reports of plunging sales have sparked much discussion as to what the spring market will bring, coupled with the uncertainty about the economy and whether there will be any further changes to the interest rate. But there is also quiet optimism in the air.
Overall prices seem little impacted – according to the Institute’s median sold prices for the last three months, prices have edged up, and there is only a small 1.38% decrease compared to February 2022. The reality is that except for the markets where the buying frenzy caused both price increases and continued sales growth to become unsustainable, luxury home purchases are mostly returning to more traditional transaction levels.
The data for February 2023 does indicate there is positive movement with respect to sales. Compared to January 2023, the number of new listings entering the market increased, but of more significance is that the number of sales also increased in both the single-family and attached markets.
Coastal Connecticut Luxury Market Report
Central Connecticut Luxury Market Report
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