Two key factors will impact the luxury housing market: Report

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Elections won’t simply affect buyer behaviour; they’re also anticipated to constrain supply.

Elections around the world are set to have a profound, albeit temporary, impact on luxury housing, according to a new midyear Luxury Outlook report from Sotheby’s International Realty.

“You may decide this is a very noisy moment in time,” Nelson says, referring to a month leading up to an election. “So you might remain off-market” until elections are concluded, he says. “I think that’s a very common exercise.” The Sotheby’s report also quotes a broker in Dallas, who says that “if interest rates start falling, I think people will buy. If they stay elevated, people will remain on the sidelines.” The report goes on to cite luxury real estate transactions in Brazil, where rates have already begun to fall.

An ‘attractive time to buy’ This doesn’t mean there are deals to be found. As demand continues to outstrip supply, prices for luxury real estate around the world continue to remain firm, Nelson says. ADVERTISEMENT: CONTINUE READING BELOW It’s a phenomenon, he says, that can be attributed at least in part to “an older generational cohort that would have typically sold their home to downsize but are really choosing to age in place.

 

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