The Hamptons, a coveted vacation (and now semi-full-time) destination for the wealthy, saw a spike of more than 70% in May in terms of views on Realtor.com.
Defined as the “top 5%” of homes listed, the upscale housing secctor saw the listing price entry point across the board grow 6.1%, year-over-year, to $2.97 million.
“The Covid-19 pandemic has reinforced the resilience of the housing market and unlike prior downturns, the luxury market is leading the recovery,” says Realtor.com’s chief economist, Danielle Hale.
Unlike prior downturns, the luxury market is leading the recovery.
As I have written here as fervently as I can over the past few weeks, much of the traction in the luxury housing sector is driven by second-home markets near dense cities that have morphed into coronavirus hot spots. This reflects what I have termed the flight to the “luxury of solitude.”
If you are of a certain age, you’ll remember using a compass back in the day to draw circles and measure distances. If I were you, I’d get one out, or use its metaphorical equivalent on Google maps. Draw a circle around your office with a radius of about 150 miles. (That’s 150 miles in every direction, for the math challenged.)
Then, identify the areas of potential seven-figure second homes within that 3-hours drive. Some may be well developed and some may be mostly raw land…but not for long! The top 5% in your market in terms of home value are going to find those areas, too. They don’t want to have to board a private jet (and many that make great interior design clients can’t really afford that!) but they do want to get away from the city, and they do want to have luxurious solitude when they get there.
In my two decades of combining my strategic planning background with my interior design industry clientele, I have NEVER seen a trend so clear as this.
I’ll just conclude that in my two decades of combining my strategic planning background with my interior design industry clientele, I have NEVER seen a trend so clear as this. Again, get your compass out!