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November 2023 Luxury Market Report

By / January 31, 2024

 

The Institute for Luxury Home Marketing’s November 2023 Luxury Market Report serves as your guide for  analyzing trends. It also has comparative data for the top residential markets across Canada and the United States.

 

The report for November provides a review of the current statistics for the luxury market in North America on a month-over-month basis. Additionally, it includes the 13-month trend.

 

Looking through this report, you will notice three distinct market statuses, Buyer’s Market, Seller’s Market, and Balanced Market. A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.

 

By contrast, a Seller’s Market gives sellers greater control over the price point. Typically, this means there are few homes on the market and a generous demand, causing competition between buyers who ultimately drive sales prices higher.

 

A Balanced Market indicates that neither the buyers nor the sellers control the price point at which that property will sell and that there is neither a glut nor a lack of inventory. Typically, this type of market sees a stabilization of both the list and sold price, the length of time the property is on the market as well as the expectancy amongst homeowners in their respective communities – so long as their home is priced in accordance with the current market value

 

November 2023 Luxury Market Report: A Glimmer of Change

 

There is little doubt the luxury real estate market is still facing some interesting challenges, resulting in both sellers and buyers remaining decidedly on the fence. However, while there are no expectations of a sudden or dramatic change, a few market variables did shift slightly during October.

 

To date, all indications are that those who need to buy and/or sell will continue to do so, but for those whose criteria is more based on ‘wanting to buy,’ there will continue to be a hesitancy while they hope for inventory choice to improve and/or prices to become more favorable

 

October’s statistics show that for the first time during 2023, the luxury market registered an increase in the number of sold properties compared to its counterpart month in 2022. Single-family home sales rose 2.73% and 7.72% for attached properties.

 

It’s too early to say that this could signify a trend, especially given last month’s unexpected decrease in the number of sales compared to September 2022. However, this does show there is a resilience in the luxury arena, further underlined by the continued stability of the median sold price in both markets.

 

This upswing in sales could be the result of increasing inventory levels providing buyers more opportunity. The level of new inventory entering the market, especially, has been one of the most significant challenges to the growth of sales during 2023.

 

Opportunity Knocks in the November 2023 Luxury Market

 

There will be much debate about how things will play out over the next year. However, like all markets, there is always an opportunity for those who are ready. There are niches in every market, including:

 

  • Moving to a location that affords a better cost of living
  • Recognizing luxury pockets or property types that are next in the demand cycle
  • Biding one’s time in anticipation of finding a property that is below market value

 

Regardless of an affluent buyer’s financial profile, there is still significant confidence in the luxury real estate market and a belief in the stability of owning property. Some buyers may have previously dropped out of the real estate game due to fatigue, frustration, or even hesitation during 2023. However, in 2024 they may be primed to return as inventory levels improve.

 

CLICK HERE TO SEE THE INSTITUTE’S FULL NOVEMBER 2023 REPORT

 

We highly recommend working with a luxury property specialist during this unconventional market. As a result, you will be able to ascertain what is truly happening in your local marketplace. The art of selling and buying in this market needs a critical and analytical approach. Therefore, understanding the realities and setting expectations accordingly with a specialist will ensure that your goals are achieved.

 

Get exclusive insights into the upper-tier real estate market. Join one of The Institute for Luxury Home Marketing’s live or online training sessions. Enroll today!

 

Cindy Schulte Relocation Specialist, Tour Scottsdale Homes, 72SOLD Program Director, Luxury REALTOR®Choose a Qualified Luxury Real Estate Agent

 

Looking for a qualified Luxury Real Estate Agent? My certifications and designations include all of the following, and more:

 

 

Call me for a complimentary consultation: 480-788-5446

 

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Courtesy of the Institute for Luxury Home Marketing.

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