The last few years have been a whirlwind! With remote work becoming normal and the sudden surge of wealth created by cryptocurrency, the demand for luxury homes is growing. According to a new report, this increase in demand combined with low-interest rates, record-setting inflation levels, and hefty bonuses from big corporations is causing a real estate boom.
New Wealth, New Homes
This report by Sotheby’s International Realty theorizes that the combination of the new work-from-home landscape and crypto millionaires has made investing in luxury homes more common. Since the real estate market is being driven by hybrid and remote work, it’s changing quickly. For example, multiple billionaires were competing to buy a co-op in New York that was listed for over $40 million. Talk about competition!
Luxury Bounce Back
Last year, Manhattan’s luxury real estate market came back with a boom. Of the over 1800 properties that sold for more than $4 million, 400 of them closed at over $10 million. That is a figure that blows the pre-pandemic boom out of the water. The pandemic triggered a massive demand for homes, which is a trend that is expected to continue. Not only do people want new houses, but they’re also willing to throw millions of dollars down for them.
The Demand for Low Tax Areas
Buyers may want to spend more money on homes, but they want to pay less taxes living in them. That’s why low-tax areas like Texas and Florida are seeing a surge in luxury home construction. Any area that serves as a tax haven will continue to see a luxury real estate boom. On the other side of that spectrum, high-taxed areas continue to see an exodus.
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