Residential real estate markets in the U.S. and abroad may be settling down from the frenzied pace of pandemic buying, but buyers waiting for significant slowdowns or price drops shouldn’t hold their breath, expert panelists said on the first day of Mansion Global’s Luxury Real Estate Conference on Tuesday.
“World city prime residential markets had the best first half of a year since 2016,” said
director for Savills World Research. “Seventy percent of cities monitored saw positive growth in the first half of this year.”
In cities as well as suburban and rural markets, the aftershocks of a wild 2020 are still very much being felt.
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“To call this year unusual would be a major understatement,” said
chief economist, Realtor.com. “In 2020, the housing market was off to a strong start, then the pandemic put it on ice for a couple of months, though we never saw home prices decline, only flatten. Then, as the economy opened back up, housing markets roared back to life and prices grew at double-digit paces.”
(Mansion Global is owned by Dow Jones. Both Dow Jones and Realtor.com are owned by News Corp.)
While 2021 has thus far been spared the wild ups and downs of the previous year, we’re still in the middle of an unusual market. As activity starts to normalize from the chaos of the past 18 months, below, some insights on what lies ahead from Tuesday’s panel discussions on residential real estate:
More: U.K. Sellers Should Take Advantage of a Strong Market Before Home-Price Growth Cools Off
Cities Were Never Dead
While big cities—particularly those that rely heavily on foreign investment—unquestionably took a hit in the pandemic, some are already bouncing back stronger than ever.
“You really can’t go wrong with [investing in] New York,” said
partner, Withersworldwide. “Even in an event like the pandemic where the market corrected for a bit, demand has soared, it’s through the roof.”
Similarly, in London, transaction volumes for properties above £5 million (US$6.7 million) were up 61% year over year,
More: As Schools and Offices Reopen, New Yorkers Eye Second-Home Locales With Shorter City Commutes
Meanwhile, smaller cities have also seen a significant influx of buyers seeking lower home prices and more space, while still prioritizing access to urban cultural amenities and a shorter commute to the office.
“Small cities have come out as places that can offer those things quite well,” Mr. Tostevin said. “They make it easy to nip into the office when needed, with cheaper living accommodations. We’ve seen that translate into price growth.”
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