What's Trending: The "Right" New Inventory Fuels the Market

By now you probably heard that inventory continues to impact luxury home sales, but have you heard much about the "right" inventory? 

Per the Coldwell Banker Global Luxury program's Mid-Year 2024 Report now out, a critical factor driving market performance is not just new inventory - but the right inventory. Let's review: From January to May, increases in new listings correlated with rising sales. Conversely, the month-to-month decline in new listings in June (7.5% for single-family homes and 11.5% for attached properties compared to May) coincided with a drop in sales.

Single-Family Properties

Attached Properties 

Strong demand is reflected sold prices remaining close to asking prices, but buyer hesitancy surfaces when pricing is misaligned with market trends or properties don’t meet the refined expectations of affluent buyers, i.e. "the right properties." 

Monthly Average Sold to List Price Ratios | January 2023 - June 2024

As previously noted in The Trend Report in January, “have-it-all” properties – from new-construction and move-in ready homes to fully bespoke residences offering curated lifestyle experiences – continue to be the most sought-after among discerning buyers. The problem? There's just not enough of these "unicorn" properties to satisfy demand. Markets that have successfully adjusted to this demand by introducing new, desirable luxury inventory have experienced strong sales. In other words: build the right kind of luxury inventory, and affluent buyers will come.

Here's what several Coldwell Banker Global Luxury Property Specialists told us about the right inventory and what they're seeing in their respective markets: 

What Our Luxury Insiders Are Saying

"If the home shows well, in a desirable area, multiple offers are still very much happening." - Patty Sheets, Coldwell Banker Realty, Flower Mound, TX.

"Unless the property is well priced or checks every box, it remains sitting on the market. Ultimately, sellers need to become realistic." - Pamela Dougherty, Coldwell Banker Realty, Beverly Hills, CA. 

"There is both a limited pool of homes and sellers still asking top dollar." - Bob Pearson, Coldwell Banker Realty, Westlake Village, CA.  

"Our market area needs more quality inventory." - Steve Saftler, Coldwell Banker Bain, Redmond, WA. 

"We have two markets. The properties that tick all the boxes sell and sell quickly. The properties that don't, are sitting on the market remaining unsold." - Graham Canham, Coldwell Banker Turks & Caicos 

"Thanks to the growing attention from buyers around the world towards Paris, particularly due to the Olympic games, many sellers are taking advantage of this period to bring Parisian 'gems' to the market. These properties, often unique and of high quality, are generating strong interest, which is fueling a very specific Parisian real estate market." - Vanda Demeure, Coldwell Banker Paris & Monaco

"We continue to use our network to create opportunities for our buyers in this market where quality inventory is limited. Having a strong foothold in our markets, deep relationships with brokers across the globe, and solid relationships with our past clients have allowed us to keep a pulse on inventory that will be coming soon, which has proven to be tremendously valuable to our buyers." - Dawn McKenna, Founder, Dawn McKenna Group

This is just one of several trends highlighted in the Mid-Year 2024 Report. Read the full report here and stay tuned to discover them all.