The U.S. luxury real estate market has made a stronger showing during the first half of 2024 than it did in the first half of 2023, according to midyear luxury reports from Coldwell Banker, Compass and Sotheby’s International Realty.

The number of ultra-luxury homes (those $10 million and higher) that sold during the first half of the year increased by 3.9 percent from the first half of 2023, according to Compass’ report.

Sales of single-family properties across the full spectrum of the luxury market (defined as the top 10 percent of the market) were up 2.66 percent year over year, according to Coldwell Banker’s report, while attached luxury sales only increased by 0.25 percent year over year.

Luxury prices also hit new heights, with the median price for the top 10 percent of U.S. luxury homes up 37.5 percent as of June 2024 from June 2020 levels to $1.695 million, according to Coldwell Banker.

“Premium properties remain timeless, and the findings of this report demonstrate a strong commitment from both buyers and sellers to complete transactions,” Felipe Hernandez Smith, head of Compass Luxury, said in a statement. “There are exceptional homes nationwide catering to every lifestyle, and it’s encouraging to see that premium real estate is always in vogue.”

Overall, luxury agents and brokers are optimistic about how 2024 has shaped up thus far and where it seems to be heading, with nearly 70 percent of Coldwell Banker Global Luxury property specialists expressing optimism in this year’s market. A few key factors agents will keep an eye on as the year continues, as brokerage midyear luxury reports suggest, include dream homebuying trends, elections, the economy, and growing and emerging markets.

Consumer trends: unicorns and dream homes

Desirable inventory continues to drive market demand, particularly those homes that don’t require any work before moving in, Coldwell Banker’s report noted.

More than 44 percent of the firm’s luxury specialists said that well-priced, well-presented homes, especially those that are “unicorns,” meaning move-in ready, brand-new or with many amenities, continue to see high demand.

“Demand for luxury spec houses and townhomes remains particularly strong,” Coldwell Banker’s report said. “Modern aesthetics with natural materials like wood, an open plan, eco-friendly features and the latest smart home technology — these are all on the must-have list, along with flexible and functional living spaces that cater to a variety of experience, wellness and a sense of community. This shift seems to be driven by growing numbers of younger affluent buyers who have different priorities than previous generations.”

A growing number of luxury homebuyers today are also seeking out their forever dream home, Coldwell Banker luxury agents said. During the pandemic, clients scrambled for a place in which to shelter, but now that their lives have normalized and many remote work policies are shifting, agents said that buyers are looking for new homes that match their long-term goals. Life transitions, like starting a family, are also increasingly a source of motivation for buyers who are moving, agents added.

Original Article by: Lillian Dickerson