2020 has dealt us all quite a few surprises, especially when it comes to real estate! Here in Colorado, we remained busy with low inventory and low mortgage rates. With the Denver metro area continuing to be in high demand, we have a strong outlook for 2021. But let’s look at a more specific piece of the Colorado real estate picture - the luxury market. What can we expect from the luxury real estate market in 2021?
Non-traditional luxury markets on the rise
Buyers equipped with more resources aren’t just looking in the cities anymore - they are setting their sights on non-traditional luxury locations with more outdoor space. Many buyers are prioritizing outdoor living areas, proximity to great schools, and varied entertainment options. The COVID-19 pandemic has driven a demand for these options across the board, and we are seeing luxury buyers really focus on these priorities. Luxury suburban locations and areas with more land are becoming much more popular given the fact that kids will return to school, but many people will remain working remotely.
Emphasis on office and learning space
It makes sense that luxury buyers want more square footage, but there are specific things they have in mind. With a rise in remote work (and many companies opting to stay in a work-from-home model), office space is quickly becoming a non-negotiable. Also on the list - learning space for kids. Since many kids spent the bulk of 2020 learning remotely, people saw firsthand the value in having a designated learning area for their children. Even when schools return to in-person learning, many families will still value a specific place for their kids to focus and learn. Because the pandemic shut down gyms, home gyms are also growing in demand. A designated, appealing space for workout equipment is quickly becoming a luxury home must-have.
New luxury buyer demographic
The Institute for Luxury Home Marketing recently identified an emerging group of luxury buyers - those placing all emphasis on home and health. Buyers in this category are rerouting traditional spending habits to purchase luxury homes that check all the boxes when it comes to family needs, along with health and wellness. Spurred on by the rise in remote work, this group of buyers can essentially work from anywhere, so location is no longer one of the top factors. It’s more important to find a home that suits all the needs of their family.
With motivated buyers looking to expand their space, 2021 looks like it could be a strong year for luxury homes. When it comes to buying and selling high-value homes, it’s important to work with an agent who knows and understands your specific market. Interested in learning more about selling or buying a luxury home? Let’s talk! Get in touch with me at 8Z Real Estate.