Amidst a frenzy of Pandemic inspired transitions, Luxury Home sales Soar
Strong demand and shrinking supply are fueling a sharp rise in luxury real estate prices in Costa Rica./
Virtually every sector of this market is seeing higher demand
Yet as the country slowly reemerges from shutdowns and some covid restrictions, housing sales are soaring, fueled by a pandemic that ignited a frenzy of transitions in virtually every corner of the United States.
Buyers have been aided by a rising stock market that has ballooned their wealth and expanded their budgets.
But unlike past property booms, this one is seeing a surge in sales at the top of the housing market, with more expensive properties selling nearly twice as fast as lower- and midpriced homes.
Wealthier Americans have benefited greatly during the pandemic thanks to the rising stock market, which typically helps grow net wealth,” says Lawrence Yun, chief economist and senior vice president of research at NAR. “So there’s greater demand for luxury housing now and that sector isn’t as hamstrung by inventory shortages as the rest of the market.”
COVID-19 has brought on an unprecedented change in lifestyle and housing needs, especially for the wealthy who can afford to choose where they live. In 2020, stock market gains, low interest rates and more of the affluent working remotely have all contributed to a continued boom in the luxury real estate market.
One of the biggest attributing factors to the rise in luxury home sales is the amount of affluent home owners working from home. This trend doesn’t look like it’s ending anytime soon, and homeowners are looking for larger homes with ample office space – especially when everyone in the family is at home as well.
In addition to wanting ample room for a larger home office, health and wellness is a top priority to luxury home buyers. Larger homes allow buyers to have room for wellness areas like yoga studios and meditation rooms.
Another shift the pandemic brought is the move from densely populated areas to places where homeowners can have private outdoor space and less crowds. New York City, in particular, saw a mass exodus last year as the pandemic spread through the five boroughs. Because of the ability to work remotely, high earners fled the city in search of more space and privacy.
The study showcases both sides of the COVID-19 crisis, with affluent Americans taking advantage of low mortgage rates and the ability to work from anywhere, and buying up high-end houses — particularly in popular vacation destinations like Costa Rica. Meanwhile, many lower-income Americans have lost their jobs and lack the means to become homeowners.
The study showcases both sides of the COVID-19 crisis, with affluent Americans taking advantage of low mortgage rates and the ability to work from anywhere, and buying up high-end houses — particularly in popular vacation destinations. Meanwhile, many lower-income Americans have lost their jobs and lack the means to become homeowners.