And everyone has started to recognize the change. In the Triangle, the shift has been quite radical in the general housing market. Demand has increased substantially and inventory is in short supply. Sellers are asking for more and buyers are quickly beginning to notice the new normal of multiple offers and paying over list price.
The same can't quite be said for the luxury market just yet. While prime real estate has certainly seen productivity and turnover has been much faster than what we saw during the recession, the luxury market is still, by and large, a buyer's market.
With that said, the shift that luxury business has always been slow to make is in the area of marketing. Unfortunately, a number of agents, builders, and developers continue to go the traditional route. They have a less than remarkable presence online, they print off a large number of flyers to send to agents, and usually only spend time marketing to the local market. The problem with this approach is that, in the Triangle, almost half of luxury purchases ($1M+) are made by buyers outside the local market. Many buyers are coming from areas such as New York, Connecticut, California, and China to name a few.
The market has undoubtedly shifted. But the question is, specifically in the luxury market, has the owners of luxury homes, and the professionals that sell them, learned to shift with it?
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