If there’s one market that’s benefitting from a booming global economy and a strong stock market, it might be the luxurious home market, which has seen robust growth in the past year.
According to new findings from Christie’s International Real Estate, there were 36 trophy homes worth at least $100 million offered for sale as of May. That massive acceleration is in large part because of global uncertainty in 2016 and 2017, spurred by Brexit and the U.S. presidential election, during which buyers hit pause on buying expensive properties, according to Christie’s International CEO Dan Conn.
“And now you’ve come through that, you basically have a matchmaker’s paradise,” Conn told FOX Business’ Dagen McDowell during an interview on Wednesday.
Because of the lack of consumer interest, sellers – sidelined long enough – began to drop their prices. At the same time, buyers are now buoyed by high asset values across effectively every asset class. Now, buyers are prepared to make offers, while sellers are ready to transact in “pretty much every market.”
“You’ve got a recipe for strong growth across all of the markets,” Conn said.
Some of the most sought after markets for luxurious homes are the ones you’d expect: Hong Kong, New York, London, Singapore and San Francisco. But other, hotter markets included Paris, Washington, D.C. and neighborhoods south of Los Angeles – “which became hot because L.A. isn’t so approachable,” according to Conn.
And good news for buyers: The opportunistic trend is likely to continue into 2019, thanks to significant demand and an economy that’s growing at a reasonable eclipse.
“There’s no evidence at this point that 2019 is going to be softer,” he said. “I don’t have a crystal ball, but I just don’t see the dynamics changing.”