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Q: How Has COVID Affected the Luxury Market?

Post-lockdown, the residential suburban market is booming.

How has the COVID-19 pandemic affected luxury residential real estate in most major markets?

As you may know, I speak all across the country and have nationwide and international connections with agents, broker-owners, etc., and I recently launched a series called “Luxury Lunch and Learn” due to COVID-19. We’re 40+ episodes in, and I’m always asking these top-producing agents and influencers what they’re seeing in their luxury markets.

If your market is hot now and you’re talking to a seller who’s thinking about selling in the future, consider advising them to list their home now.

In most major cities, the downtown areas—or what we call “vertical living” (condos, high rises, high-end rentals)—are hurting. Many people are looking to move to the suburbs because a) you can work remotely, and b) amenities like public pools aren’t as restricted in less populated areas. People are also gravitating toward the outskirts of cities because they want more land and greater sense of safety. 

In many areas, the residential suburban market is as strong as it’s been in 10+ years. I know the Chicagoland suburban market is as strong as it’s been in 15 years. Just the other day I talked to an agent in Houston, and she said that she’s had more showings for her million-dollar listings in the last month than she saw in then last year. 

In summary, the market is hot right now. What does this mean if you’re talking to a seller who’s thinking about selling in a year or two? It’s like I tell my sellers: Maybe the market will still be hot after the election or into next year, but maybe it won’t. Right now, though, most high-end and luxury markets are in a seller’s market. 

To paraphrase Wayne Gretzky: You miss 100% of the shots you don’t take. If your market is hot now and you’re talking to a seller who’s thinking about selling in the future, consider advising them to list their home now vs next year or after the election. However, you only have one chance to make a first impression, so make sure the home is photo-ready. 

In any case, be a student of the game. If you’re with a big franchise, you can learn from other big franchises. If you’re with an independent brokerage, you can learn from companies big and small. We can all learn from each other. Don’t have a scarcity mindset. 

As always, if you have questions about this or any topic, don’t hesitate to reach out to me. Keep raising the bar in real estate, and remember: It’s not the market, it’s the marketing.

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