I think we can all agree that 2020, 2021, and the first half of 2022 were extremely eventful when it came to the real estate market. As our entire world was rocked by the pandemic a real estate boom was born. But inflation worries have tempered the market leading to higher interest rates and a decrease in demand. As we look to the year ahead, how will all of this play out in the luxury real estate market in Rancho Santa Fe? And more importantly, what should you know as a luxury home seller? Let’s take a closer look.
Real estate is still seen as a smart and stable investment
With all the economic uncertainty that inflation brings, Americans still see real estate as a smart and stable investment. In fact, it was voted as the best long-term investment in a 2022 Gallup Poll for the eighth year in a row. Nonetheless, rising interest rates have cooled the market in many places, making it more expensive to buy a home. Fortunately, rising interest rates don’t affect the luxury market very strongly as many wealthy buyers do not rely on mortgages to purchase a home. With the recent fluctuations in the stock market, real estate is seen as a more stable investment. This is good news for those who want to sell a luxury Rancho Santa Fe home in 2023.
More international buyers will enter the market
Now that pandemic-era travel restrictions have eased, we’ll see more luxury international buyers in the market for a home. Foreign investors are better able to travel to the United States to make major real estate purchases. Southern California continues to be a top destination for international buyers. This means we’re likely to see more of them in the coming months.
More buyers will be looking for second homes
The pandemic changed how we live. Many are now able to work from the comfort of home instead of commuting to and from work. More buyers, especially luxury buyers, are interested in purchasing a second home as they are much more likely to use it frequently. Wealthy buyers are eager to enjoy resort-style living whether they are working or on vacation. And here in Rancho Santa Fe, residents can enjoy an amenity-laden lifestyle including all the perks of living so close to the golden sands of the Pacific coast.
The bottom line
Although the real estate market in general is in a state of transition, the luxury market will not feel the effects as strongly. Most experts agree that while there may be some bumps in the road ahead, the luxury real estate market will remain stable.
Contact the Lucy Kelts Collection today
Are you interested in learning more about buying or selling a luxury home in Rancho Santa Fe? Then contact the Lucy Kelts Collection at 858-775-8843 or [email protected]. Our team of experts is ready to sit down with you personally to discuss your real estate goals for 2023. Contact us today to get started. We look forward to speaking with you!