In a short time, we’ll be celebrating the new year, and I want to wish you a happy holiday season. As we approach 2020, I have a few predictions for the high-end luxury market to share with you.
I’ve gotten a lot of local and international input, and many people are saying that the upper market is slowing down and will continue to do so in 2020. Of course, there are still pockets of our market that remain hot.
I recently had San Francisco agent Jim Walberg on my podcast, and he mentioned that the median household income needed to purchase an average home in his market skyrocketed from $90,000 in 2012 to $195,000 right now. In other words, home affordability in certain areas is pricing people out of the market. With these people being priced out of the market, home sellers won’t be able to sell their homes as quickly, which leads to a buyer’s market.
On that note, I think 2020 overall will be a buyer’s market for luxury properties. Keep in mind, though, that “luxury” is relative to your local market. In our certification, we define luxury properties as those that are 3x the average sale price in any given market. If the average sale price in your market is $400,000, we’d define the luxury market as homes in the $1.2 million price range.
“Many people are saying that the upper market is slowing down and will continue to do so in 2020.”
As mentioned above, many experts we’ve talked to agree that the market is slowing down and turning into a buyer’s market. This means if you’re an agent, you have to think outside the box, and that’s what we teach with our certification. Our certification consists of 16 modules, and modules eight through 16 focus on the best strategies to sell homes. It’s our job to present options and exit strategies to our clients, so think about various exit strategies besides price lowering when representing high-end homes in 2020 and beyond.
2019 has been an amazing year for us. We did over 34 training sessions, which is an increase from 2018, and we expect 2020 to be even more exciting. We have speaking engagements booked in Mexico, I plan on releasing my book “Luxury Listing Specialist” in Spanish, and we just launched our Ambassador Program and Luxury Instructor Program.
If you’ve read my book, please leave a review on Amazon. If you listen to our podcast, please leave us a review as well. We’re on episode No. 72, and we plan on releasing a new episode every week in 2020.
If you have any questions about our 2020 luxury market, don’t hesitate to reach out to me. I’d love to help you. Have a happy New Year, and remember to keep raising the bar and proving others wrong.
Founder & CEO | Luxury Listing Specialist Designation (LUXE)
to see where Michael is speaking next or where his next LUXE class will be.