Luxury, second home, and lakefront sales

KNIEPER REAL ESTATE

Pam Knieper, Broker/Owner of Knieper Real Estate, is and has been the #1 Top Producer for more than 15 years in Hood County and running. She is known as the Waterfront Expert and the Authority on Real Estate.

During the pandemic, second homes became popular because of the rise in work-from-home flexibility. That’s because owning a second home, especially in the luxury or lakefront market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind, a luxury home isn’t only defined by price. In a recent article Investopedia shared additional factors that push a home into this category: location, such as a home on the water or in a desirable city, and features, the things that make the home itself feel luxurious.

A recent report from the Institute for Luxury Home Marketing (ILHM) explains just how much remote work impacted the demand for second and luxury homes: ‘The unprecedented ten-fold increase towards remote work since the pandemic is an historic development that will continue to fuel second home demand for many years to come.”

But what if you bought a second home that you no longer use? If you’re now shifting back into the office or are seeing your priorities and needs change, you may find you’re not utilizing your second home as much. If so, it may be time to sell.

And if you own what’s considered a luxury home, buyer demand for it may be even greater. In another report, the Institute for Luxury Home Marketing explains:

“. . . the last few years have left their legacy for the luxury market. While it might only represent a small percentage of the overall real estate market, luxury homeownership’s influence is growing. Not only has the purchase of homes valued over $1 million (a figure considered by the National Association of Realtors to be a benchmark for luxury) tripled from 2.6% to 6.5% since 2018, but demand for multiple luxury properties has soared over the last two years.

And we have seen this happening in our beautiful hometown of Granbury.  Sales in 2023 for homes valued over $1,000,000 have increased by 25% over the same period in 2022 and sales for Lake Homes priced over $500,000 are up almost 30%.  That is significant and a large majority of those buyers are cash buyers, so the rising interest rates are not having the same effect on sales in this category. 

This phenomenal increase has been driven by a growing affluent demographic who consider owning a luxury property a necessity in their asset portfolio. All indications are that this trend is here to stay.

If you own a luxury second home or Lake-House that isn’t being used as much anymore, now’s the time to sell. There are still buyers in the market who are looking for a home like yours today.

As always, we thank you for taking the time to read this article.  If you have questions or comments, we would love to hear from you.  Give us a call at 817-219-0456 or visit us online at www.WeSellGranbury.com.

pamK@knieperteam.com | 817-219-0456