Mid-Year Review of 2024

This month, we evaluate the luxury real estate market at the six-month mark and where it lies at the end of June 2024.

Statistical Review

The luxury real estate market has become a seller’s market after a slow start to the year. In June, single-family home markets were sellers’ markets, balanced and favoured buyers. Winter resorts and destinations constituted buyers’ markets due to weak summer sales.

Sales in June 2024 decreased compared to June 2023, for both single-family homes and attached properties. However, sales spiked from January 2024, with an increase for single-family attached homes.

Although a slowdown is expected in July and August, the trend shows stability in the overall luxury market. Inventory levels increased, with both single-family homes and attached properties up compared to June 2023. Low inventory remains a challenge, with sellers hesitant due to high interest rates and buyers specific in their expectations. Some luxury properties have faced price pressure, allowing buyers bargaining opportunities.

Price consistency indicates a favourable seller’s market, with single-family homes selling at almost 99% of their list price and townhouses at the same level.

Trends in Review

The luxury real estate market remains strong due to several key factors. Wealthy individuals continue to invest in luxury real estate, seen as a stable and lucrative long-term investment. Despite rising inventory levels, supply remains below demand in many markets. Desirable locations, lifestyle choices, investment opportunities, and exclusive amenities drive this demand.

Changes in lifestyle, work-from-home trends, and evolving home expectations influence affluent buyers. Desired features include extensive amenities, larger spaces, home offices, gyms, outdoor spaces, and proximity to nature. Buyers seek homes that can be customized, incorporating sustainable building practices, eco-friendly features, advanced technology, and wellness spaces.

There is a split between those moving to suburban and secondary markets for more space and those staying in urban centers for luxury condos and high-end amenities.

Future Expectations

The luxury real estate market will continue to evolve, adapting to consumer demands, technological advancements, and economic factors. Buyers seek premium properties that meet their specific requirements, willing to pay a premium if conditions are met. Sellers need to recognize that overinflated prices are unlikely to sell.

Wealthy buyers are driven by exclusivity, unique property qualities, and the need to diversify their portfolios. While current purchase costs are historically high, real estate remains a consistent long-term investment, providing security and a haven for families.

Source: The Institute for Home Luxury Market