|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.
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: