Community News

The return of the high-end real estate market has been a popular topic lately. And while I enjoy analyzing the raw sales numbers and dissecting the data projections, this article will cover the lighter side of who these buyers are and what is currently trending in luxury home sales. 
 
Though most certainly the attributes of the high dollar buyers vary; in a nutshell, they are richer, global, younger, faster, and more demanding. As for richer, there are the new self-made multi-millionaires, many of who are shareholders in this tech race for digital and social dominance. The second group is the next generation of a homebuyer who is poised to inherit great sums of money from a boomer parent.  Both sets love real estate. They will be looking to invest much of this money into legacy properties where they can build memories and then pass them along to future generations. This younger generation of homebuyers values family, friends, and fun. How about Urban Edgy for a new term? Many in this group like to be near the epicenter of activity in major US cities where dining, shopping, and entertainment are all consolidated in close proximity. Some corporate headquarters, including Google and Zillow, are relocating offices to San Francisco and New York to meet this demand. However, it is also important to note the irresistible draw that only Mother Nature can provide in the case of outdoor luxury communities, which would include our very own Yellowstone Club, Moonlight Basin, and Spanish Peaks at Big Sky. And the concept of living near the epicenter is alive and thriving in downtown Bozeman with all of the new residential construction along the side streets near East Main Street.
 
Globally, the real estate market in the United States is the golden child of international wealth. The top 5 countries that see value in investing their money in the US include China, the United Kingdom, South America, Canada, and India. Montana in particular is benefiting from the influx of Canadian money to resort border towns like Whitefish and here in the Bozeman and Big Sky area. Larger ranches and acreage in central and eastern Montana are also of interest to our investor friends to the north.  Although increased sales activity from international buyers normally begins in the coastal, metropolitan markets, the trickle-down effects are felt far and wide.
 
Design trends come and go, but one that has come forward in the luxury market is the shift from quantity of square footage to quality of craftsmanship and personalization in the home. These homebuyers are still spending significantly, but they are putting their money into high-end materials that can separate their home from the rest and are much more thoughtful about how the space will be used. Furthermore, in a recent poll by Meredith Corporation, 94% would give up as much as 1,000 square feet of living space in exchange for lifestyle amenities such as a better neighborhood, a house with “character,” more land, access to dining and entertainment, or a shorter commute. 
 
Many luxury homeowners want their homes to look traditional on the outside but modern on the inside. This relates to everything from kitchen islands, cabinetry, appliances, Wi-Fi-enabled technologies, automation, and so forth. Architecturally, superior detailing in the home is an expectation. They want crown moldings, coffered ceilings, plank wood, fireplaces, etc. Hardwood floors continue to prevail in this market. The kitchen remains the center of the home with top-notch finishes. While granite is still by and large a major countertop stone, people are mixing stones, such as Quartzite.  Often couples will seek to have separate offices so both can be connected to work from home. Individualized guest bedrooms with their own private bath and extra living or play space are also very popular. 
 
Upscale homes still feature dedicated rooms such as home theater rooms (though they are going away from rows and rows of lazy boys to be a more cohesively designed multi-purpose room).  Dog grooming rooms, planting centers, and wrapping/crafting rooms are also making the list of top preferences. 
 
As we experience some ramp-up in new construction, it will be interesting to see if these national design trends spill over into our condos and single-family residences. And as we enter another ski season, it will be fun to note the international flavor of our ski slopes and downtown. Remember that the affluent out-of-state and global visitor, and especially the returning visitor, has a likely ability to become a part-time homeowner in our vibrant valley.