More Consumers Considering a Luxury Home Purchase
Nationally, 13% of surveyed consumers are ready to buy a luxury home and another 26% are considering a high-end home purchase, according to a new survey from Realtor.com. Survey data reveals the buying motivations of transaction-ready consumers and others considering purchase, as well as provides insight into their preferred luxury property amenities and resale expectations.
Percentages of surveyed consumers currently considering a luxury home purchase:
- 13% of respondents stated that they are looking to purchase a high-end luxury home;
- 26% said they might be considering a high-end luxury home;
- 61% revealed they are not looking for a high-end luxury home.
"The luxury homebuyer is an important contingent of today's real estate market, as luxury homes tend to drive trends throughout the entire balance of the marketplace," said Barbara O'Connor, chief marketing officer for Move, Inc. "We are seeing large portions of buyers throughout the country – from 23% in the Northeast region and 23% in the South Atlantic – eyeing luxury homes. This means sellers, builders, and certainly realtors should all pay particular attention to desired luxury amenities such as chef-quality kitchens and master suite features to close deals for them."
Of the survey respondents who are currently looking for a luxury home:
- Most popular reasons high-end buyers started their luxury home search:
- 19% said recent career success prompted their luxury home search;
- 17% entered the market because they recently retired;
- 14% got into the market as an investment; and
- 12% entered the market to buy their first home.
- Biggest challenges of searching for a high-end luxury home:
- 40% of luxury buyers cited finding a property that meets their family's needs;
- 20% shared their biggest challenge is the limited number of properties offered;
- 11% tout ultra-unique properties with limited universal appeal;and
- 8% are challenged by gaining access to mortgage loans.
- Most important home features when considering a luxury purchase:
- 54% of luxury buyers indicated a chef's kitchen as an important feature;
- 44% consider the home's views of oceans, mountains or cityscapes as significant;
- 38% responded that the square footage of the property is a key attribute; and
- 36% included the presence of an expansive master suite as an important factor.
- Regional breakdown of current luxury home buyers' locations:
- 23% South Atlantic (VA, WV, NC, SC, GA, FL);
- 23% Northeast (ME, VT, NH, NY, NJ, MA, CT, RI, MD, DE, PA);
- 18% North Central (KY, OH, IN, IL, MI, WI, MN, IA, NE, KS, ND, SD);
- 15% Pacific (CA, OR, WA, AK, HI);
- 14% South Central (AL, MS, TN, AR, LA, TX, OK); and
- 7% Mountain (MT, ID, WY, CO, UT, NV, AZ, NM).
According to new Ad-ology research, when asked what their personal goals are for the next year, 15% of U.S. adults plans to move to a different place of residence. New home seekers are highly likely to purchase new furniture for their home as well as high-speed Internet service. New home seekers are also 62% more likely than the average consumer to be in the market for a new car/truck during the next 12 months.
AudienceSCAN data is available as part of a subscription to Ad-ology PRO. Media companies can access AudienceSCAN data through the Audience Intelligence Reports in AdMall.