The luxury real estate market is almost a unique product in the modern economy. It behaves in a way that is atypical of other products. Christie’s International Real Estate reports in its 2012 market report ‘Luxury Defined’ that although luxury real estate remains “driven by global economic and political trends, the luxury property market continues to see activity that remains relatively impervious to these [economic trends] and more closely follows the luxury goods market”. For buyers today, this means that luxury real estate is not only an enjoyable experience for those that can afford it, but also a good investment.
Last year, the selling prices of luxury goods rose more quickly than the general economy. The Bain annual report of the state of the luxury market finds that the market for luxury products and services is experiencing steady growth. Compared to general U.S. housing prices, which are expected to increase only one or two percent a year, the luxury market is a top performer. “Luxury residential purchases, even trophy properties, can be considered a conservative investment,” Christie’s reports, just as real estate continues to be most individual’s way of storing money.
In Ridgefield, we are seeing a slow uptick in the number of luxury home sales in the $2 million plus range, resulting in five closed sales in 2012 compared with two in 2011. With interest rates still at record lows, and money cheap, it’s a great time to think about getting into the luxury real estate market.
You can download the full Christie’s International Real Estate ‘Luxury Defined’ market report here. For more information about my luxury listings, or to view all luxury properties in Ridgefield and greater Fairfield County, search the MLS. And don’t forget to sign up below to receive new properties directly to your inbox.