Summit Sotheby’s CEO says luxury real estate has split from the broader market

Thomas Wright, CEO of Summit Sotheby’s International Realty, Sotheby’s Utah affiliate, described real estate as a “K-shaped” market in which the general and luxury segments are increasingly diverging. He said the luxury segment has surged, and that the top 1% of buyers represent $54 trillion in wealth, citing the Sotheby’s Luxury Outlook Report.

According to Wright, affluent buyers want more than property: they seek a lifestyle, time with family, and unique experiences. He said luxury properties require different valuation and marketing approaches from those used in the general market. Privacy and security have become particularly important; some sellers do not want photos of their homes widely circulated online.

Wright favors a tailored marketing strategy: brokers should ask clients how much exposure they want and what risks they are willing to take. In his view, a one-size-fits-all approach is not sufficient.