Luxury home sales do not lockstep with the balance of the residential real estate market. A “luxury home” is defined as a property with three times the median sales price in a market. Lane County’s median sales price is $265,000 (RMLS 1/31/2017). Our luxury home market are those homes valued at $795,000+.
Selling Luxury Homes in Eugene
Consider luxury homes for sale in Eugene today. The high-end properties ($750,000+) are not enjoying the same robust seller’s market that the balance of the market is experiencing. January 2017 saw a 14 percent decline in number of high-end homes for sale and experienced a 60 percent drop in the number of pending sales over $750,000 during the month. By January 31, only two homes over $750,000 went pending sale while 24 homes for sale remained on the market (Regional Multiple Listing Service 2017).
However, there are exciting indicators that the high-end market will see an uptick in activity moving forward. Per Christie’s International Real Estate article, From tech to TV—which industries are sparking a luxury housing comeback?, “Portland saw an amazing 40 percent growth in million dollar sales last year and prime properties were selling in less than three months.” This activity increase is attributed to “millenipreneurs,” those of the millennial generation (born 1980-1995) active in entrepreneurship. The effect of “millenipreneurs” can be seen in the growth of Oregon’s Silicon Forest, tech ecosystem shifts toward software startups and tech outposts. These entrepreneurs working on startups often seek out university towns with an appealing lifestyle in which to grow roots. Eugene offers the qualifications for that marketplace.
Potential Homebuyers for Luxury Homes
Regardless of the trends, there are significantly fewer potential buyers at the highest price points. These buyers are 45-60 years of age, and they are running extremely robust business lives and busy households. They are confident and comfortable in their wealth and they enjoy entertaining in their private residence, especially in the indoor/outdoor living areas. Formal living has given way to integrated common areas to match their busy lifestyles.
Luxury homesellers must recognize that these buyers could build their next home in lieu of compromising their expectations with a “used” home. Frankly, these buyers are used to getting their way. Sellers who recognize the affluent buyer’s need for a home with a “story,” a unique opportunity as well as their expectation of a turnkey-ready home with all the modern conveniences will be the successful sellers in 2017.