Two Key Factors Will Impact the Luxury Housing Market: Report.

According to a report from Sotheby's International Realty, elections around the world have a temporary impact on the luxury housing market, leading to a decrease in transactional activity leading up to an election. This is due to buyer psychology and the uncertainty surrounding elections. Additionally, elections are expected to constrain the supply of luxury housing as sellers may choose to remain off-market until the elections are over. However, the report suggests that the impact of elections on the housing market is overshadowed by broader global monetary policy, particularly interest rates. The report also highlights that falling interest rates can stimulate buyer activity, while high rates may keep buyers on the sidelines. Despite the subdued luxury housing market, prices remain firm due to high demand and limited supply. The report also notes that older generations are choosing to age in place, which further limits the supply of luxury homes. However, falling interest rates may attract more buyers to the market, leading to increased competition for the limited available homes. Overall, the report suggests that now is an attractive time to buy luxury real estate. [Extracted from the article]