As 2023 progresses, luxury OC real estate and the real estate market at large is set to see some significant changes from what we were used to in the last two years. Now that we have eased out of the pandemic, the market has gradually slowed down, with noticeable trends in the types of homes being sold.
To keep you on the loop, here’s an Orange County housing report for luxury real estate:
- Bigger is not always better
During the height of the pandemic, a lot of luxury home buyers preferred bigger houses over those with a smaller square footage. However, now that people have more freedom to go out, and people are returning to schools and offices, the need for larger homes has abated. In one report, smaller luxury single-family homes sold almost 20% faster than larger ones. One factor affecting this development could also be due, in part, to higher home prices. Luxury home buyers tend to pay in cash, so a home with ample space but with a smaller footprint makes more sense to purchase.
- Global buyers are reentering the market
Since domestic and international travel restrictions have loosened, more foreign buyers are back to checking out the US real estate market. Top international buyers based on dollar volume are from China, Canada, India, and Mexico. Most foreign buyers look for properties in Florida, California, and Texas. This is promising for the Orange County luxury real estate market.
- Cash is still king
Mortgage rates are higher than ever, giving the elite an advantage because they have the option to pay in cash. Cash transactions make up a significant amount of total transactions in real estate, largely due to luxury home buyers. These high-net-worth buyers can take money out of cryptocurrency and stock market investments and invest them in real estate, which is more tangible and is sure to be a solid investment in the long run.
- Sustainability and smart technology is the future
To keep up with the times, more and more luxury buyers have been looking for homes with sustainable and smart home features. With the rise in unusual climate disturbances, people are now seeing an environmentally conscious lifestyle as the way forward. Thus, homes with eco-friendly building materials, solar panels, and energy-saving appliances have become desirable features . Smart home technology has been garnering appeal as well, since it gives residents the ease of automated systems which can be controlled with a touch of a button on a phone.
- Location is key
Location is more important than ever. During the pandemic, remote work and school allowed families to relocate to rural areas, waterfront communities, and vacation destinations. However, with school and work returning on-site, people are back to considering where they’re moving. Some real estate purchases in the last two years have resulted in buyer’s remorse, prompting homeowners to move post-pandemic.
If you’re interested in buying or selling luxury Orange County real estate, it’s best to work with an established Realtor. Meet Robyn Robinson, an expert Realtor catering to communities in South Orange County. With over $1 billion in sales and experience spanning over 3 decades, Robyn has helped countless clients sell and purchase homes. She can help you find the ideal home tailored to your needs.
Contact Robyn Robinson today at 949.295.5676 or send her an email here for more information on luxury homes in South Orange County.