Luxury in ’22: Market slowdowns, reality TV, the metaverse and more – Inman

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Following a standout year in 2021, the luxury real estate market finally hit a long-awaited blip in 2022 — but not right away.

Through years of a dreadful coronavirus pandemic, luxury clients continued to put their money into real estate as favorable market conditions like record-low interest rates spurred them to buy, while many continued to wonder how long this honeymoon phase of investing cheaply could last. But as much as high-net-worth individuals typically appear to be unaffected by larger market forces, this year ultimately proved otherwise.

Bess Freedman | Brown Harris Stevens

“The first two quarters [of 2022] were like a continuance of 2021,” Bess Freedman, CEO of Brown Harris Stevens, told Inman recently.

“There was still that feeling of FOMO in the air and people were still spending, so the luxury market remained steady and somewhat strong. We saw big purchases in the Hamptons and Palm Beach and in New York City, so that was good. But as we moved into the third and fourth quarters, things have definitely slowed down. It’s not like the brakes are on, but people are trying to sort out what’s going on in the market overall.”

“It’s a more guarded environment overall because of what’s going on,” Freedman added. “You can’t not recognize that we’re in a different economic environment.”

But even amidst that fluid economic environment, a number of luxury companies grew in 2022, undeterred by the year’s challenges. For instance, The Agency and Pacaso had big years for expansion and strategic partnerships.

The original article can be found here