Here's what's ahead in luxury real estate in 2021
The Upper Midwest outlook for luxury properties
Posted: April 23, 2021 by Anna Jotham
While much of our region's economic outlook remains foggy in the midst of the pandemic and its ripple effects, there's robust optimism when it comes to the luxury real estate market in 2021. In 2020, COVID brought about social distancing measures and an uptick in interest in the luxury home sales markets as some families sought to escape to second homes, and others looked to find luxury properties to ease the pain of safer-at-home guidelines, not to mention working from home protocols. As the pandemic continues into 2021 and even as it abates in the future, we expect the luxury real estate sector to remain strong in the Upper Midwest.
Factors influencing the luxury real estate market in the Upper Midwest
In 2021 we'll see several factors influencing movement in the luxury real estate market in the Upper Midwest. Whether you're considering buying or selling a luxury property this year, you'll want to keep an eye on these dynamics.
The 2021 outlook is bright for luxury properties in our region
At the start of the pandemic, we saw some new needs emerge in the luxury buyer market. We expect all of these factors to continue to play into the luxury home market in 2021, driving demand for luxury properties.
- Families want a haven to which they can retreat and relax in safety, rather than waiting out lockdowns or safer-at-home orders in metropolitan areas.
- Members of the professional workforce, now free to be productive from anywhere, need office space that can accommodate that need...and all the better if it is located in a vacation-like setting. As the line between work and home life continues to blur, those with discerning tastes are seeking to make the most of it.
- With kids studying at home, families also need additional space to allow for schoolwork to be done, as well as safe outdoor spaces and amenities for recreation.
- Professionals from large cities outside the Upper Midwest are rethinking their options as they embrace the freedom to work from anywhere — and are finding more affordable luxury options in markets outside costly metropolitan areas. Even midsize-to-large midwestern cities offer great value for the luxury property dollar when compared to major markets. The Upper Midwest remains competitive for this demographic, who often find they can afford luxury in our region and a higher quality of life, compared to what they are paying for far fewer amenities and less comfort and space elsewhere.
- Record-low mortgage rates continue to entice luxury real estate buyers and vacation property buyers, and we expect those rates to remain attractive.
- We're also seeing and anticipating professionals' continuing relocation as some industries thrive amid the pandemic and others stagnate. Innovation in the Upper Midwest and a favorable business environment positions us well to attract this vital workforce.
Ready to buy or sell a luxury property in 2021? We can help.
If you're thinking of selling or buying luxury real estate in 2021, having the right team on your side can make all the difference. From helping you find the luxury home that fits your lifestyle and vision to connecting you with the buyers who know the value of the ideal property, our Realtors can make 2021 the stuff that luxury dreams are made of. Contact us to chat with one of our Realtors about the luxury doors we can open for you in the coming year.