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Photograph courtesy TTR|Sotheby’s International Realty
We asked two prominent real estate experts to give us their perspective on the current luxury residential market. Brad Kappel explains the forces driving the current market, and Katherine Davis identifies home features that buyers most often seek today.
The local luxury real estate market is at a 15-year high as it relates to contract volume. Days on market has fallen to less than 30 days for properties listed over $1M. As of July 1, 2020, there are currently 74 properties priced over $1M that are under contract. The inventory levels for luxury properties are at an all-time low! Thus, we are now seeing an unprecedented
sellers’ market.
Three main factors appear to be driving buyers to buy right now.
1. There is a maximum exodus from urban environments since the COVID hit us. People who needed to live close to the office in the city are now working from home. They look to areas like Annapolis, where their money goes farther, and they can have an outdoor lifestyle and have more social distance.
2. After spending eight to ten weeks stuck in their current home, many people realized that it did not suit their needs and determined that they were ready to look for a better home.
3. Interest rates are at a record low, sub-3%. When money is cheap, buyers can increase their budget and get more house for their money. The inventory isn’t expected to rebound anytime soon, and the rates are also expected to remain low. So this is not only a great time to sell and obtain top dollar for you home; it is also a good time to buy and lock in a low mortgage rate if you can find what you’re looking for.
Brad Kappel is a native Annapolitan and a real estate agent for TTR Sotheby’s International Realty, Annapolis | bradkappel.com
There has never been a time when the quality of home life has been more important. The luxury market has been fantastic, with buyers seeking refuge from highly populated areas. Privacy, larger lots, upscale pools, outdoor kitchens, hardscapes, and multifunctional office workspace are the must-haves for today’s luxury buyers.
Katherine A. Davis is the Associate Broker and Branch Vice President Annapolis Fine Homes office, Long and Foster
Christie’s International | longandfoster.com/annapolis-md-fine-homes-realty
Photograph courtesy Annapolis Fine Homes, Long & Foster
Annapolis Home Magazine
Vol. 11, No. 4 2020