Open floor plans and old houses with character are out. Solid walls to provide peace and quiet and backyard oasis’ are in.
And if you’re looking for an entry-level price point, get ready to pony up $100,000 more than you would have a couple of years ago.
Luxury buyers’ tastes have changed since the onset of the pandemic. Prior to the arrival of Covid-19, open floor plans were all the rage. That is no longer the case now as people spend much more time in their houses, said Sara Harper, a luxury-focused realtor with Ansley Real Estate Christie’s International.
In some cases two adults in a home will be working remotely. These buyers want more space, and they want separate spaces to avoid clashing video calls.
And for those with children, dedicated spaces for schoolwork are in demand.
“The kids have a home office,” Harper said.
Newer homes — or vintage abodes that have been fully updated — are preferred. Luxury buyers aren’t interested in messing around with renovations. They want something that’s move-in ready.
Generally speaking, modern design is preferred to a traditional motif. Tastes may vary on specific fixtures and features, but there is one particular amenity for which demand has exploded since the pandemic’s start.
Everybody wants a swimming pool.
Atlanta Business Chronicle in September reported on surging demand for pools in metro Atlanta. Demand for pools spiked because of the early pandemic lockdowns, and the trend picked up momentum as homeowners’ equity ballooned over the past two years.
“Pools are No. 1,” Harper said. “Everybody’s like, ‘Whatever it is, it needs room for a pool, or it has to have a pool.'”
Location is an important factor, too, said Glennis Beacham, founder of Beacham & Co. Realtors and a 40-year veteran of the business.
Old Fourth Ward, the historic neighborhood that boasts Atlanta’s history (Ebenezer Baptist Church and Martin Luther King Jr’s home) and its modern flair (Ponce City Market and the Atlanta BeltLine’s Eastside Trail) has emerged as a desirable locale for luxury buyers in recent years, Beacham said. North Fulton suburbs including Milton and Johns Creek are hot, as well.
The leafy neighborhoods in Buckhead, which has long been Atlanta’s most affluent district, remain in demand, even though some residents have been vocal about crime concerns.
Over the three months ending on Aug. 31, luxury home sales in metro Atlanta fell 39% year over year, according to a Sept. 22 report from national brokerage firm Redfin Corp. Redfin defined luxury homes as those estimated to be in the top 5% based on market value.
The number of new luxury homes listed in metro Atlanta during that period was up 20% year over year, and there were 14% more luxury homes for sale.
Beacham said competition in the luxury market has declined in recent months due to rising inventory and mortgage rates. But, prices are still going up.
The median sale price for a luxury home in metro Atlanta from June through August was $1.175 million, according to Redfin. That was about 25% higher than one year earlier. Beacham said she considers the luxury market to start at $3 million. Harper has a broader definition and estimated the entry-level price for a single-family luxury home in Atlanta is about $850,000, up from roughly $750,000 before the pandemic.
And just because inventory is rising, that does not mean there is anything close to a glut of supply.
“I have some buyers who are in the higher-end price range, and they cannot find anything,” Harper said. “It’s been months for them.”