Forbes Global Properties has released this month’s Luxury Agent Poll. When asked about the primary factors influencing the behavior of buyers actively seeking properties priced at US$2 million and above, 32% of Forbes Global Properties domestic experts reported the buyer’s personal financial circumstances, followed by 29% citing a scarcity of inventory.
Agents went on to report that 16% of buyers claimed favorable property pricing, and 7% claimed local economic stability.
The Luxury Agent Poll is a monthly extension of Perspectives, a comprehensive analysis of the worldwide luxury residential market garnered directly from Forbes Global Properties’ roster of more than 13,000 prominent local agents. As highlighted in the report, the frenzied speed that characterized the 2021 and top of the 2022 market was met with volatile financial markets, rising inflation, limited housing supply, and economic and geopolitical uncertainty gave sellers and buyers reason to pause, causing luxury real estate transaction activity to ease.
“Buyers of luxury properties in 2022 watched their financial investment portfolio diminish which created a cautious approach to purchase, and many stayed on the sidelines,” said Andy Nelson of Willis Allen Real Estate in San Diego, California.
“Sellers had to reduce their expectations of list price by 15 to 20% in order to motivate buyers to transact in this higher interest rate environment,” added Matt Fitzgerald of Slifer Smith & Frampton in Vail, Colorado. “Updated, well-located properties that are priced in line with current market dynamics are still seeing a strong amount of demand.”
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