Before the health crisis of 2020, additional space and amenities had a different feel for homebuyers. Now, more square footage and carefully designed floorplans are crucial for many buyers. You may not be needing a home office, but a multi-purpose room, gym, etc. may be exactly what you are looking for when you upgrade.
The Institute for Luxury Home Marketing (ILHM) states, “With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback.For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-size homes – specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.”
This time last year was different. The most recent Luxury Market Report from ILHM explains, “Exactly one year ago, we reported that demand for large properties, mega mansions, private estates, and luxury ranches had reduced significantly over the previous few years; especially from the younger generation of luxury property buyers.”
For today’s buyers looking for luxury homes, steady increases in their equity might be what makes a move possible. Leveraging home equity makes it easier to afford the down payment on a luxury home, and current low interest rates are making mortgage payments more affordable than they have been in years. The report from ILHM also notes, “Luxury real estate prices may continue to strengthen further into the third quarter, as the affluent continue to see large investment returns from the currently strong stock market.Coupled with the low interest rates, the policies granting (and insisting) on working from home implemented by many employers, and the concerns of the pandemic, all translate to the affluent increasingly trading in their city lifestyle for a home that has it all.”
Clearly, today’s strong gains in home equity paired with record-low interest rates make fall a great time to move up into the luxury market to meet those changing needs.
Key Point
If you’re ready to gain some breathing room in a larger home, it’s a great time to contact us and we can help you find more space in the luxury home market.