Luxury Real Estate Trends 2023
We are now emerging from one of the best real estate markets ever, around the nation and in the Finger Lakes region of New York. For the last couple of years, buyers and sellers were amazed at skyrocketing home prices, mostly fueled by tight inventory.
While in some locations real estate prices are starting to drop, the number of luxury homes on the market has not yet caught up with the strong demand from affluent buyers. That translates into rising luxury home prices, so affordability is now an issue for wealthy buyers as well as the average homebuyer.
Luxury real estate refers to properties that are higher than average in terms of price, size, quality and/or location. A widely accepted dollar amount for a luxury single-family home is seven figures or more, and many real estate professionals classify a luxury property as one in the top 10% of listed homes in the area.
Luxury homeseekers typically look for upscale amenities and conveniences that are not found in average homes. During the height of the pandemic they were likely to consider oversized single-family houses featuring over 3,500 square feet. The additional square footage accommodated adults working from home along with children who accessed at home learning online.
It is interesting to note that over half of the consumers who are seeking a home with a listing price of more than $3 million are millennials. Working remotely means that millennials can work from their preferred location, and that has led many of them to seek a second home as a vacation getaway. They are also buying luxury property as an investment.
Now that the pandemic appears to be waning, affluent homebuyers are becoming more comfortable venturing back into the office at least some of the time and the kids have returned to school. It is not unusual to see buyer’s remorse on the part of wealthy homebuyers who purchased a luxury home in haste during the recent buying frenzy. Many regret their move to a large house in a remote location. A lack of enough nearby neighborhood amenities can lead to a decline in their lifestyle.
According to a recent survey of luxury real estate trends, wealthy buyers are now looking at smaller single-family homes with 2,500 – 3,500 square feet since they no longer have a need for so much space. In fact, smaller luxury homes sold 19% faster recently than larger luxury homes. The sky high price tags we now see on many luxury properties also contribute to the trend toward downsizing to a smaller home.
New first time luxury homebuyers with a household income of more than $100,000 annually are more likely to relocate to an area with an inviting neighborhood feel. They value areas with a high walkability factor and easy access to restaurants and other amenities.
After the stress and uncertainty of the past few years at the height of the pandemic, real estate investment has become even more appealing for affluent buyers. Not surprisingly, many of them are craving financial and emotional stability.
Real estate is considered a safe long-term investment when compared to stocks, cryptocurrency and other investment instruments. For luxury buyers, purchasing a second home can be an excellent investment as well as a good move, especially for people who are still working remotely most of the time.
According to the NAR ((National Association of Realtors), cash real estate transactions are on the rise. Some wealthy buyers are taking money out of the stock market and investing in luxury real estate, which is more tangible. Investing in smaller luxury homes is appealing to affluent buyers paying cash because of the lower upfront costs.
The upscale amenities and exceptional natural beauty of New York’s Finger Lakes Region makes it a highly desirable area for luxury homebuyers. The historic Finger Lakes region is home to 9,000 of square miles of breathtaking landscapes with stunning views of waterfalls and lush mountain greenery.
The eleven Finger Lakes are famous for picturesque views and water activities like boating, swimming and fishing. Luxury buyers can take advantage of boutique shopping and a variety of appealing dining options that line the captivating streets of charming small towns that dot the area. They can enjoy visiting multiple wineries and take advantage of a variety of arts and cultural events. Luxury homebuyers can also access nearby outdoor activities like skiing, golf, and hiking in the nearby national parks.
If you are considering buying a luxury year-around or vacation home in the New York’s beautiful Finger Lakes region, Kelli Ide can help you make smart decisions. Kelli Ide is a Licensed Real Estate Associate Broker with Michael DeRosa Exchange, specializing in Waterfront Vacation Homes, Luxury Estates and Historic Properties.
Kelli Ide offers a unique, concierge-style approach to real estate, including staging, photo styling and market preparation services exclusively for clients to give them an edge over the competition. For further information about buying or selling a home in New York's Finger Lakes region, visit kelliide.com.
Looking to Buy or Sell a Luxury Property in the Fingerlakes Region? Contact our firm today!
