6 to 9 percent of the buying public seek homes priced at $750K+
Just as beauty is in the eye of the beholder, the definition of luxury varies from community to community and from person to person.
Regardless ofdemographic, luxury represents things of wealth and value that we desire and aspire to possess. Who doesn’t want a great new car or dream vacation?
For affluent consumers, a luxury home tops the list of desired possessions. At any given time, 6-9 percent of the buying public is seeking a luxury property. In the Carolinas, the luxury price point is defined as $750,000 or above; in other areas, such as New York and Los Angeles, the range is much higher – $2 million and above.
“Luxury properties generally remain on the market longer than other properties, simply because the available buyer pool represents less than 10 percent of all buyers in the marketplace,” said Pat Riley, president and CEO of Allen Tate Companies, in the July-August edition of Carolinas Market Update, a bi-monthly real estate video series.
Luxury buyers are more discerning of what they want – and there is little distinction between wants and needs, said Riley. Luxury buyers have no urgency to move, so they don’t have to buy quickly and they always have the option of building a custom home to meet their criteria. In many cases, luxury buyers chose to move simply because they don’t want the inconvenience of upgrading their current home.
In the Carolinas, it’s not uncommon for a luxury client to have a primary home and a second or even third home at the mountains or the beach, said Riley. And Americans make up a large percentage of those who own a home abroad – representing 37 percent of buyers in the Caribbean and 20 of buyers in Latin America.
Allen Tate represents buyers and sellers throughout the Carolinas, including luxury. A sampling of available luxury properties may be found in the company’s exclusive Online Luxury Magazine or by searching on allentate.com.
Carolinas Market Update is targeted to consumers in the Charlotte, Triad, Research Triangle and Upstate S.C. regions. It is produced every other month by the Allen Tate Companies and features information, statistics, trends and predictions about the real estate market in North and South Carolina.