The first six months presented unexpected challenges to the real estate market, and the economy in general, like never before. But thankfully, industry experts see brighter days ahead. The much-anticipated Mid-Year Survey by RCLCO, a trusted industry prognosticator, points to an imminent resurgence. A few highlights from the report include:
- Industry leaders see the severe declines as being behind us with a positive outlook in the second half of 2020.
- Most believe that the active adult and for-sale residential sectors have already hit bottom and are on the way back up.
- The largest number of respondents believe that recovery will begin within a year in the hospitality market.
There is particularly good news in the luxury market, according to a recent article in Forbes Magazine by realtor.com (June 27, 2020). Javier Vivas, realtor.com’s Director of Research, sees a positive upswing on the horizon: “I was surprised when I saw the data telling us luxury buyers are back in full force. People have less confidence right now in the stock market. Luxury buyers are seeing value in buying a second home as an investment and a getaway.”
The Forbes article goes on to point out that as recently as May, the luxury sector led the housing market in median price growth—up 1.6% from May a year ago. As much of the country was under a Coronavirus lockdown, individuals and families began searching for luxury homes: “online searching for million-dollar-plus homes was 7.3% higher than last May.”
As Peter Dayot, Managing Director of the real estate and hospitality marketing firm, Publicus Community observes: “We have been carefully tracking and monitoring the analytics and searches in the real estate market—particularly the luxury market. And there has definitely been a strong up-tick in the number of searches for the higher end, gated properties and communities.”
So why the upswing in the luxury market? Experts believe that because of the uncertainty of Covid-19, along with burgeoning civil tensions within major U.S. cities, many buyers are being drawn to the security and safety that a private, master-planned community affords. Dayot is quick to point out that this all makes perfect sense. “When you look at the surge of Covid-19 in various cities, as well as the political unrest in a few major metro areas, families are craving safety and security. And no place provides that quite like a private community. Families can ‘isolate,’ within a master-planned community that offers much less risk than heavily populated cities.”
With buyers now looking more than ever for the piece-of-mind that private communities offer, the time is now, for developers, builders and the hospitality industry, in general, to start marketing to these dialed-in segments. Homebuyers are starving for new information and living alternatives that can safeguard their day-to-day lives. People are actively seeking a living experience that grants their family the things that matter most: privacy, security, stability, and ultimately, quality of life. This is a message begging to be heard.
