Nationally, luxury home sales have remained high despite the ups and downs of the real estate market over the past several years. So what qualifies as luxury real estate in 2015? While price point serves as simplified definition, let’s consider the characteristics that qualify a home as luxury.
Location – As you might expect, location is a major factor when determining a home’s value. The surrounding neighborhood, community amenities and city services all help determine the desirability and value of a property.
Curb appeal and aesthetic – A buyer looking for a luxury home wants exquisite design detailing inside and out, along with added amenities. Features like an at-home theater or gym, a swimming pool, tennis court, built-in barbecue, outdoor fireplace or guesthouse are just a few examples of added extras a luxury home may include.
Customization – Luxury buyers want homes that are customized to their desired taste. Whether buying an existing home or building from the ground up, luxury homes are typically one-of-a-kind.
Advanced Technology – One of the biggest trends we are seeing in homebuilding is smart home technology. Luxury buyers are connected to their smartphones and tablets, which now allow them to remain connected to their homes. They can remotely turn on their security system, adjust indoor temperatures, activate appliances and even start dinner before heading home from the office.
Size – Size counts when we think of luxury homes. We typically think big, but bigger does not always mean better. Now, many luxury homebuyers are opting for lock-and-leave space in urban centers within walking distance from shopping and dining venues. Upscale condos include on-site fitness centers, dry cleaning services and other luxury amenities.
According to a Huffington Post article published in early January, real estate indicators from Zillow information and research analytics predict that California and the Southwest (Phoenix, Reno, Las Vegas, etc.) will see some of the biggest jumps in home value appreciation for 2015. While these predictions are general, in reference to all levels of housing, we can expect an increase in pricing to follow suit at luxury levels.