The Report 2023

The Report 2023

The Report 2023, published by the Coldwell Banker Global Luxury® program, curates the latest luxury real estate insider intelligence and forecasted market trends from the Institute for Luxury Home Marketing, Wealth-X, Coldwell Banker Global Luxury Property Specialists and other wealth experts. Curious about what's driving affluent buying and selling decisions? Below are the Top 10 Takeaways and a link to the Full Report. 
Top 10 Takeaways: 
  1. A housing market correction appears to be underway. After three years and 40% price increases in the luxury home sector, uncertainty took root after the Federal Reserve started hiking interest rates in March 2022 to curb inflation. The market appears to now be normalizing to pre-pandemic levels.
  2. Seasonality came back in 2022, but with a twist. Inventory, sales, and prices all rose in the second quarter only to stall in the third and fourth quarters, as the market reacted to outside influences. Expectations are that the spring market will return in 2023.
  3. Behavioral gaps between wealth demographics widen. High-Net-Worth (HNW) individuals are expected to shift focus to conscious spending and futureproofing, while Ultra-High-Net-Worth (UHNW) individuals will continue to live for the moment and prioritize personal enjoyment.
  4. Agent outlook remains upbeat. Over half of Luxury Property Specialists surveyed said they expect 2023 luxury home prices to remain flat or up slightly from 2022. Over half said they expect demand to remain consistent throughout 2023, while nearly 30% said they thought demand could be stronger by the end of the year.
  5. What defines a dream home in 2023. Most Luxury Property Specialists said that indoor-outdoor living spaces, a chef’s kitchen with up-to-date appliances, and a home with a breathtaking view are their clients’ top must-have home amenities. Meanwhile, 40% said that their clients define a dream home by its views and 36% said the quality of construction or materials.
  6. Secondary homes become mainstays. The percentage of those with a net worth of 5 million+ who own two or more properties increased from 70% in 2021 to 79% in 2022, per Wealth-X. Among those, nearly 15% of all wealth is put toward real estate and other luxury assets.
  7. Top spring buying and selling opportunities. An analysis of 125 U.S. metropolitans revealed the top 10 opportunity markets for buyers and sellers this spring. St. Louis led the list for sellers while Marco Island, Florida has grown friendlier to buyers.
  8. The Top 20% continue to lead luxury. An analysis of 10 prime U.S. markets from New York to Los Angeles reveals that the wealthiest spenders carry an outsized influence in the high-end residential sector.
  9. Wealth centers shift worldwide. New York is the No. 1 city for primary residents and secondary-homeowners with a $5 million+ net worth, but Singapore jumped into the Top 10 in 2022, taking the No. 4 and no. 7 positions, respectively. Now that China has lifted its COVID-19 travel restrictions, experts also predict increased movement in that part of the world.
  10. Secondary-home ownership makes a comeback. Borders have opened up, and with it, has come increased global travel and a growing affinity for property ownership in foreign countries among HNW individuals. Their reasons for looking beyond their home country range from economic to political and financial, but their penchant for exclusivity and adventure plays a key role.





Work With Harmony

Harmony has the skills and strategies to ensure a smooth process and lead you to exciting results. With a background in marketing and luxury development, she is adept at strategically marketing homes in a variety of ways.

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