What is "Luxury Real Estate" | Manhattan Beach Homes for Sale

Manhattan Beach CA is a "Luxury" Real Estate Market

We often see properties described as "Executive Home", or "High End" or "Exclusive" with certain listings falling into the "Luxury" market. So, what does all that mean? For me, it is about "lifestyle" and convenience and I'll get to that later in this post as I dissect the difference between the Luxury (ie Lifestyle) Real Estate market and the housing market in general.

Recently there was a conference held by Inman in Beverly Hills addressing that specific question and here's what some of the research indicated based on Realtor input.
  • Most common cited price range for "Luxury Real Estate" is $2M-$5M.
  • Location is most important factor for "Luxury" home buyers.
It should be no surprise that "location, location, location" is the response to “what motivates luxury buyers”  and overwhelmingly “living in the right neighborhood,” with 69.71 percent of the vote is extremely important as well.

A curious buyer trait I've recently noted is the importance placed on the neighbor's house. Having lived in the Beach Cities for a long time and most of it in the Sand Section, I never thought much about a state of the art Pat Killen contemporary next to let's say an original beach house that looked like it should be knocked down. (Well truthfully, that beach shack was most likely my house, lol.)

But recently as I've worked with Buyers I've seen some very nice homes linger on the market because of what was next to them. I find that interesting because these days if you don't like the way the neighbors place looks, wait a few years it will be gone as lot values continue to accelerate.

So let's talk about Lifestyle vs Housing. But first let's talk about cars. I recently did an event at one of my listings with Tesla.

I don't think anyone would question that Tesla is a Luxury brand. Yes, your 20 year old beater can get you to work but not in the same style and as comfortably as the Model S. And yes, Mercedes-Benz, BMW, Audi and others all are positioned as Luxury brands. But they also have downmarket, albeit very good, products and offerings at a lower price range.

So building a huge house in a less expensive neighborhood does not make a property a "Luxury" home.

As with automobiles, here's the analogy for housing.

Luxury homes offer amenities above and beyond, in a premier location, with a style that enhances your living experience.

Good a definition as any I suppose.

And because I am a technology guy, one more thing.

Here's the tech that luxury real estate clients expect: