Category Archives: affluent buyers and sellers

Historic homes are beating the housing crisis and recovering faster

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9 Top Spots for Resort & Golf Living

9 Top Spots for Resort and Golf LivingSummertime might be over, but vacation time is just getting started. For many golf and resort markets, the first half of 2013 showed leaps and bounds in high-end activity, with some regions reporting increases as high as 50 percent compared to last year.

The opportunities each resort town offers — from boating on the Intracoastal Waterway to putting in the mountains of Colorado — combined with today’s ease of mobility has brought a wave of buyers into the second-home market. From coast to coast and even in parts of Mexico, these destination cities are thriving, and not just in their peak seasons, as more and more people find ways to make the most out of their vacation homes.

Fort Lauderdale
Fort Lauderdale’s luxury market is strengthening “almost weekly” this year, says Julie Jones of Premier Estate Properties, noting that new construction is booming. Jones recently sold an oceanfront property for $5.5 million, adding there are plans to redevelop and renovate it into a $15 million estate.

“The demand is for premium land for development into luxury residences on the water and oceanfront,” she says.

There’s also a huge appeal for the avid boater, who can take larger vessels into Fort Lauderdale without any concern for shallow waters, says Niki Higgins of Seaside Properties Group at Douglas Elliman.

“A person with a big boat that draws more than eight feet of water can’t take their boat to many places in Miami,” Higgins explains. “The fact that Fort Lauderdale has canals and pointe lots with deep water is very appealing to boaters.”

Fort Lauderdale’s proximity to Miami is a huge draw for buyers who work full time, but still want a “relaxed, easy lifestyle,” Higgins adds.

“People aren’t slowing down; they’re changing gears,” she says. “[It’s] a very relaxed, easygoing town. People can work, even if they’re away from their office. If you need to go down to Miami for a business meeting, it’s no big deal.”

With Miami becoming a vibrant city, Higgins likes to think of Fort Lauderdale as the Greenwich, Conn., of the region. Jones agrees, describing Fort Lauderdale as a “cosmopolitan city” with much to offer.

“You have amazing, clean beaches, beautiful parks, great restaurants and shopping plus a thriving downtown,” Jones says.

Vail
The grand re-opening of the Cordillera Golf Club, one of the area’s premier courses, has led to “positive news” for the Vail Valley, according to Gina Dizon of Ron Byrne & Associates Real Estate.

“We’re seeing improvement, a lack of inventory and various price points, and that will help support a stronger market,” she reports. She adds that prices range from $1,100 to $1,200 per square foot, depending on the community.

While golfing is a huge attraction for summer residents, Vail Valley — which encompasses the communities of Beaver Creek, Arrowhead, Red Sky, Eagle Ranch and Cordillera — offers a year-round lifestyle to its second-home buyers, Dizon says.

“The summer attracts the golfers, but there is a huge cycling and mountain-biking community. In winter, you’ve got skiing [and] snowshoeing, plus performing arts, theater, music [and] culture,” she says.

The area also attracts buyers from other big cities; the Vail Valley is “the most urban ski environment I’ve ever found,” Dizon says.

“You don’t have to drive hours to get to a source of entertainment. We think nothing of driving to Denver for the day,” she adds.

Telluride
The quiet town of Telluride and its equally peaceful neighbor, Mountain Village, is nothing short of heavenly for avid golfers. There’s no heat, no stress and – perhaps best of all – gravity is on the golfer’s side, explains George Harvey of The Harvey Team.

“Golfers love to come up and play in the cool mountain weather. And at this elevation, you can drive the ball farther,” he says.

A little peace and quiet is another gift the area bestows. Approximately 90 percent of Telluride’s market is the second-home buyer, who can escape the heat in the summer, take advantage of prime skiing in the winter — or perhaps do nothing but relax and unwind.

“Telluride is a little remote, a little harder to get to — that’s one of our best qualities,” Harvey says. “We don’t have traffic jams, it’s more peaceful and you can get your pulse rate down in just a couple of days.”

Luxury in the Mountain Village community ranges from $1 million to $4 million, where the town of Telluride is closer to $1 million to $5 million, Harvey says. The home he’s currently listing in Telluride is priced at $12 million and features a limitless view of Wilson Peak out its front window.

“In the summer, it’s lush and green [and] dropdead gorgeous,” Harvey says. “I ask my clients why they came here, and it’s the natural beauty. People are awestruck by it.”

Aspen

Although it’s one of many Colorado ski resorts, Aspen’s unmatched land value and rich 125-year history make it a favorite among second-home buyers.

“It’s mostly second homes and resort homes,” says Brian Hazen of Coldwell Banker Mason Morse Real Estate. “People come for the skiing and stay for the summer. They spend a lot of time here — maybe more so than they do in their primary homes.”

Recreation is a predominant part of residents’ lives, Hazen says. A high-end home on one of the area’s golf courses can fetch $3 million to $4 million; a ski-in/ski-out estate 10 steps from the Buttermilk ski lift can sell for nearly $5 million.

“It has world-class recreation opportunities,” Hazen says. “You have four ski mountains, incredible mountain biking, fishing and rafting.” Hazen adds that Aspen was the kickoff city for the 2013 USA Pro Challenge, a professional cycling race through the Colorado Rockies.

Land value in Aspen remains strong as well, Hazen says, noting the sale of the 67-acre Jigsaw Ranch for $41 million earlier this year.

“Eighty-five percent [of the area] is protected by U.S. Bureau of Land Management,” he says. “It prevents a lot of density and sprawl, and puts a higher price on land value.”

Jacksonville/St. Augustine
In the northeastern part of the Sunshine State, the forecast is more than promising for Linda Sherrer and Christy Budnick of Prudential Network Realty. Sherrer reports that business is up 47 percent over last year. In Jacksonville/St. Augustine, home of the PGA Tour, buyers flock to the greens.

“We have a lot of gated communities with golf surrounding them. At last count we had 67 golf courses in our area,” Sherrer says.

Buyers are also attracted to the oceanfront, and activities such as boating and fishing — and they’re also mostly looking for a primary home. The region is ideal for year-round living because the seasons are much more defined.

“You really can use your fireplace in the winter and the leaves really do change color,” she says.

But waterfront living is not limited to the ocean here.

“We have the majestic St. Johns River flowing north and over three miles wide in sections, the beaches, and the Intracoastal Waterway,” says Neil Avery of Watson Realty. “We have creeks like Black Creek and Julington Creek, which are as wide as many rivers. And there also are many lakes — like Doctors Lake — which are the jewels of our area.”

Currently, Jacksonville and St. Augustine boast the state’s lowest unemployment rate, 6.5 percent, which has driven considerable relocation business into the region.

“Relocation has picked up dramatically,” Budnick says. “We have strong employment and the cost of living is inexpensive, especially given all the amenities. We’re getting quite a few people from areas that we didn’t draw from in the past.”

The Keys
For the third year in a row, the number of sales and median prices are on the rise in the Keys, according to Doug Mayberry of the Doug Mayberry Team.

“Buyers love the independent character and laidback lifestyle,” Mayberry says. “We’re finding more and more people are attracted to this ‘live and let live’ attitude. As the current advertising campaign for the Florida Keys says, ‘close to perfect, far from normal.’”

With its blue-green waters and plethora of water-related recreation, Key West easily lures buyers, Mayberry says.

In addition, two private communities, Ocean Reef Club in Key Largo and the village of Islamorada are prime markets for second, third or even fourth homes, says Russell Post of Russell Post Sotheby’s International, because each offers world-class boating and fishing.

“Over 70 percent of the homes at Ocean Reef have dockage,” he says. “In Islamorada, you have deep sea fishing, reef fishing, flat fishing and tarpon fishing. It’s a fisherman’s paradise.”

Additionally, Ocean Reef Club offers its members two championship 18-hole golf courses. Since the Keys get very little rain, Ocean Reef has been making its own water to irrigate the greens since the 1970s. The outstanding quality hasn’t gone unnoticed, Post says.

“I’ve played with a PGA professional who said they were the best greens he’d ever seen,” Post says.

Homes in the Keys start around $300,000, but can be priced as high as $15 million.

Boca Raton
Boca Raton, Fla., has seen buyers seeking an equal mix of seasonal and primary homes, reports John List, broker/owner at Worth Avenue International Realty.

“The market for golf and resort homes is strengthening,” he says. “Prices have been going up and recouping some of the decline of the past several years.”

Perhaps known in the past as a primarily retirement- driven region, List counters that many communities in Boca Raton are bursting with family-oriented amenities. List is currently representing a lakefront estate in The Oaks, a gated community that offers the kind of lifestyle an entire family can enjoy.

“There’s a tremendous amount of golf courses and country clubs,” affirms Scott Agran of Lang Realty. “It lends itself to all sorts of activities, from golf to tennis, boating and polo.”

Prices can easily go as high as $10 million or even exceed $20 million for a coveted waterfront estate, Agran says. These top-tier homes make it known that living in Boca Raton is “like living in paradise,” he adds.

Santa Fe
Set foot in one of the classic adobe-style homes in the private community of Las Campanas and gaze out into the endless mountain vistas. Typically, that’s all it takes for a prospective buyer to realize there’s a reason why Santa Fe, N.M., is referred to as “the city different.”

Chris Webster of Sotheby’s International Realty, who has worked in the area for 40 years, can attest to the allure of Santa Fe, where the main amenity is simply “the lifestyle.”

“There’s extraordinary ambience and aesthetic,” he says. “[You can] step outside and also step back in time, and there’s a sense of timelessness that soothes the spirit.”

At Las Campanas, residents have the freedom to renovate old homesites or build anew, Webster says. A common design element among the homes is the integration between indoors and outdoors.

“The ability to move from indoors to outdoors is common here. Many rooms have their own outside entrance where you can access the patio or garden,” he says.

Aside from the great outdoors, residents can also enjoy Jack Nicklaus-designed golf courses, a spa, swimming, tennis, an impressive equestrian facility and fine dining.

“It’s an amazing combination of culture. When a visitor comes here, they feel they’ve gone to a different country,” Webster says.

Puerto Vallarta, Mexico
Nestled along the west coast of Mexico against the backdrop of the Sierra Madre Mountains, Puerto Vallarta is a natural haven for resort homes. And in 2013, the high-end market has “come back with a vengeance,” says Brock Squire of Coldwell Banker La Costa Realty.

“In 2012, there were maybe one or two sales in Puerto Vallarta [in the high end],” Squire says. “So far this year, we’ve seen 14 to 15 $1 million-plus sales.”

Squire also notes a shift in his buyers; four or five years ago, Americans led the way, but now it seems more evenly split between Americans, Canadians and Mexicans.

“The population pyramid [in Mexico] is so different from the rest of North America. We’re seeing a much wealthier, better-educated customer in the Mexican market here than in the past,” he says. “We’re starting to see a younger crowd coming from Canada and the United States. The wide range of activities are making it more attractive for a more active group to come and enjoy what we have here.”

Thanks to its ideal location, Puerto Vallarta has “unlimited amount of activities” that range from kayaking and boating to golfing, zip-lining and rappelling, Squire adds.

“You can probably count on your hand the number of quality cities or towns that are in a quality bay of size that have a backdrop of mountains. It really makes for a spectacular setting and a great lifestyle,” he says.

Most Exclusive U.S. Cities & Zip Codes

SOURCE: Coldwell Banker Real Estate LLC

Coldwell Banker Real Estate LLC

October 07, 2013 07:00 ET

Coldwell Banker Previews International Luxury Real Estate Market Report Ranks Most Exclusive U.S. Cities and ZIP Codes

 

Aspen’s 81611 ZIP Ranks as the Only Non-Coastal Market in the Top 20 List of Luxury Homes Sales of $10 Million and Up

 

MADISON, NJ–(Marketwired – Oct 7, 2013) – Today at the Coldwell Banker Generation Blue Experience Coldwell Banker Previews International® released its latest Luxury Market Report which found that Aspen, Colo., is the only non-coastal real estate market to make the top 20 list of ZIP codes with the most luxury real estate closed sales (16) over $10 million for the last 12 months ending June 30, 2013. Known for its signature slopes, five-star cuisine and posh resorts, Aspen is also a major cultural and creative hub, with the Aspen Institute attracting the world’s greatest minds each summer. Creative thinkers and homebuyers alike are flocking to Aspen for its mix of culture, recreation and environment.

Beverly Hills’ 90210 recorded the most real estate sales over $10 million (18) with New York City’s Upper West Side ZIP code 10023 one sale behind (17). New York City’s Upper East Side ZIP code 10021 ranked third, joining Aspen at 16 sales for luxury homes valued at $10 million and up.

We are seeing an influx of high-end buyers finding exclusive properties in luxury markets such as Aspen,” said Betty Graham, president of Coldwell Banker Previews International NRT. “The Colorado resort town has been known as a vacation destination during the winter months, but is becoming the permanent residence for affluent buyers seeking its unique lifestyle of culture and arts. The Aspen real estate market has also matured, ranking No. 4 in the United States for closed units over $10 million from for the last 12 months ending June 30, 2013.”

“New York City remains a dominant player in the luxury housing arena and today is being impacted by an infusion of affluent foreigners who recognize the benefits of the stable U.S. economy while also enjoying the status symbol and lifestyle New York offers,” said Budge Huskey, president and chief executive officer of Coldwell Banker Real Estate LLC. “Many plan to hold these properties for the foreseeable future. Interestingly, the high end is mirroring all facets of the city’s housing spectrum with low inventory creating a seller’s market.”

ZIP Codes with the Highest Volume of SALES $10 Million and Up

ZIP Code City / State # Sales $10 Million and Up
90210 Beverly Hills, Calif. 18
10023 New York, NY 17
10021 New York, NY 16
81611 Aspen, Colo. 16
90077 Bel Air, Calif. (LA) 12
33139 Miami Beach, Fla. 11
10014 New York, NY 10
10028 New York, NY 10
90265 Malibu, Calif. 10
90049 Brentwood, Calif. 8

ZIP Codes with the Highest Volume of LISTINGS $10 Million and Up

ZIP Code City / State # Listings $10 Million and Up
81611 Aspen, Colo. 56
90265 Malibu, Calif. 43
10065 New York, NY 37
90210 Beverly Hills, Calif. 29
10021 New York, NY 26
10023 New York, NY 26
33139 Miami Beach, Fla. 25
10019 New York, NY 24
06831 Greenwich, Conn. 23
10013 New York, NY 23

U.S. Cities with the Highest Volume of SALES $10 Million and Up

City State # Sales $10 Million and Up
New York New York 95
Los Angeles California 23
Beverly Hills California 20
Aspen Colorado 16
Miami Beach Florida 14

U.S. Cities with the Highest Volume of LISTINGS $10 Million and Up

City State # Listings $10 Million and Up
New York New York 308
Miami Florida 101
Miami Beach Florida 63
Aspen Colorado 56
Malibu Florida 43

About the Coldwell Banker Previews International® Luxury Market Report

The full Coldwell Banker Previews International Fall 2013 Luxury Market Report, available at coldwellbankerpreviews.com, ranks the top U.S. cities and ZIP codes with the most luxury listings in the $1 million+, $5 million+ and $10 million+ price ranges. It also offers a snapshot of domestic and international markets such as New York, Aspen and Italy. Photos, listings and details are available upon request. The report will be unveiled at the Coldwell Banker Generation Blue Experience in New York, where more than 2,000 of the brand’s brokers and agents from around the world will be convening to network and discuss global trends in real estate.

Coldwell Banker Previews International, partnering with the Luxury Institute, also conducted a Luxury Consumer Survey, which found that more young money is entering the luxury real estate market. Full findings of the Coldwell Banker Previews International Wealthy Consumer Survey are available on coldwellbankerpreviews.com.

Methodology

Manhattan area data has been gathered from StreetEasy.com, an on line consumer and private industry portal which reports closed real estate transactions from the Real Estate Board of New York (REBNY), as well as other reporting brokerage resources. All other data has been gathered from the Multiple Listing Service (MLS) databases known or believed to be the primary real estate broker cooperative resources for each market referenced in the report. All closed sales activity reported is for the annual period July 1, 2012 through June 30, 2013. Closed sales reported to the MLSs significantly later than this analysis period were not included. All active and pending status listing records were downloaded and processed to the same standards, and on various dates, during the months of July and August, 2013. Property-specific listing and sales records were standardized to USPS address city and zip code, inaccurate list and sale prices were corrected when necessary, and all duplicate records were manually excluded.

About Coldwell Banker Previews International®

Previews® began as a luxury home brokerage founded by Henderson Talbot in 1933. The firm was acquired in 1980 by Coldwell Banker Real Estate LLC and launched as Coldwell Banker Previews International, the brand’s luxury homes program. The exclusive group of certified Previews Property Specialists make up approximately 10 percent of the more than 82,000 Coldwell Banker® sales associates worldwide. Coldwell Banker agents participated in more than 16,400 transaction sides of homes priced at $1 million or more in 2012 which averaged $86.1 million in luxury homes sales every day. The website www.coldwellbankerpreviews.com features more than 17,000 luxury properties from around the globe. Coldwell Banker, Previews and Coldwell Banker Previews International are registered marks licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

About Coldwell Banker®

Since 1906, the Coldwell Banker® organization has been a premier provider of full-service residential and commercial real estate. The Coldwell Banker company is the oldest national real estate brand in the United States and today has a network of more than 82,000 sales agents working in approximately 3,100 offices in 51 countries and territories. The Coldwell Banker brand is known for creating innovative consumer services as recently seen by being the first national real estate brand to create an iPad application and the first to fully harness the power of video in real estate listings, news and information through its Coldwell Banker On Location(SM) YouTube channel. The Coldwell Banker system is a leader in specialty markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International marketing program. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each office is independently owned and operated. Coldwell Banker is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services.

 

Beverly Hills, Aspen had highest volume of luxury real estate sales in 2012: report

Aspen Real Estate sales news according to this article from Luxury Daily.  aspen maroon bells
Barring New York, the Beverly Hills, CA, market had the highest volume of real estate sales that started at $10 million in 2012, according to the 2013 Coldwell Banker Previews International Luxury Market Report. Other cities that ranked high in terms …  Click here to read the full article.

Best to you,
George

Barron’s Lists America’s Best Retreats for a Second Home

I read this blog post recently and wanted to share it with you.  There is also a  list of the Top 20 Best Retreat locations listed.

Is your region on the list?

Barron’s Names Jackson Hole, Wyoming #1 To Own A Second Home
This week’s issue of Barron’s magazine features The Best Locations in America for a Second Home, where Grand Teton National Park Jackson Hole is ranked
www.jacksonwyomingrealestate.com/…/Barrons-Names-Jackso…

2nd home image

Dubai real estate market heats up again. Is it a recovery?

Thought this was interesting information and wanted to share it with you!
George

Posted on Luxury Insights
Posted: 11 Jan 2013 10:11 AM PST

dubai
After the real estate downturn sent the Dubai real estate market into a tail spin with prices dropping by 50% at the worst point, the property market appears to have finally begun to turn around.  The market resurgence is caused in part by investors from the Middle East and South Asia (especially India) who are looking for a safe haven to park their money.  Evidence of recovery was given a further shot in the arm by several new luxury property developments, some of which sold out in a matter of days.

Recent statistics show that the number of property transactions in the emirate jumped 50% in the first half of 2012 compared with a year earlier.  Villa prices in prime parts of Dubai rose 19.9% in the first nine months of 2012, which is double the rate of growth seen in prime central London’s prices over the same period, according to property consultant Knight Frank.  Overall, inflation-adjusted prices increased 14.43% in the first nine months of last year, according to Global Property Guide.

As further evidence that there is local confidence in the strength of the recovery, the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, Dubai Holding and Emaar Properties, plan to develop “Mohammad Bin Rashid City.”  Referred to by local media as “a jaw-dropping project,”  the new development will include a park roughly the size of New York City’s Central Park (843 acres), a family entertainment center created by Universal Studios, and the “Mall of the World,”  a retail complex that can accommodate 80 million visitors a year.  The complex will also include art galleries, golf facilities, more than 100 hotels, plus residential areas.

Although Dubai’s market activity is encouraging, there are also downside risks, according to a recent report by Citi Research. “We caution against early signs of exuberance, such as the re-emergence of off plan sales and the risks of excessive supply given some of the recently announced projects. Such exuberance could undermine not only the sustainability of the real estate recovery but lead to dislocations in the wider economy as well,” the Citi report said.  In other words, the beginning recovery could go off track.

Crystal Ball View of 2013…Looks Much Like 2012

According to a recent article on Luxury Insights blog:

2013 real estate market

Wondering what the new year will bring to the luxury housing market?  We are guessing it will look a lot like last year.

Five years ago the recession sent the U.S. housing market into a tailspin. Happily, 2012 appears to have been a turnaround year for the residential market; however, the recovery can still retreat into a false start due to financial and political issues — including the uncertainty created by deficit issues, an expected increase in the capital gains tax, and the Dodd Frank Act (which sets new mortgage standards as of January).

The luxury home segment has led the recovery, beginning in 2011 in many markets.  One major driver of luxury market activity has been the increase in the number of wealthy U.S. households.  The start of the recession saw the number of High Net Worth Individuals (HNWI) — those with a million or more in investible assets, not including their personal residence — drop dramatically. Consequently, the luxury home market cratered. However, this affluent group recovered their wealth quickly and many focused on residential real estate as a desirable asset.  For some, a second or third home was both a lifestyle purchase and a portfolio play.  Record low interest rates and the perception of bargain home prices were also purchase motivators for the affluent.

As a result, the luxury market in many areas enjoyed increased activity in 2011 and in 2012.  For instance, California is often considered a bell weather state and it was one of the hardest hit geographic areas in the downturn. According to DataQuick, in the second quarter of 2012, million dollar home sales in California were up 10.3% above the same quarter the previous year.  This was the highest level of million dollar sales since the third quarter of 2007.  One of the strongest luxury market recoveries occurred in Miami where, according to Knight Frank stats, the luxury home segment saw a jaw-dropping 35% price increase over a two year period ending in September, along with declining inventory levels.

While U.S. luxury purchasers are active, a major driver of the luxury market is the wealthy international buyer.  Foreign demand for U.S. homes has grown, as has the diversity of the foreign buyer prospects. The factors which influenced foreign luxury home demand in 2012, are still at the top of the list as influencers for 2013.   

  • Wealth creation.  As wealth rises, especially in emerging countries, the number of prospects shopping for prime residential properties grows.
  • The flight to safe haven.   The U.S. is considered a stable, safe place to invest.  For those who wish to move assets out of their home countries, the U.S. has special appeal.  For some, physical safety for themselves and their families is also a consideration.
  • Currency fluxuation.  Although home prices slipped when we went into recession, the home price decline is aggravated when some currency exchange rates are considered.  In short, the bargain prices brought by the recession were discounted further for some foreign buyers.
  • The desire to own prime property and enjoy a desirable lifestyle.  Lifestyle is a powerful motivator.  Trophy homes in desirable areas have great appeal and supply is limited.

Where foreign buyers come from depends upon the market.  Brazilians, Venezuelans, and Argentinians continue to flock to Miami along with Germans and Italians.  Australians and Brazilians are boosting the Aspen market.  Russians, the British and French are joining Wall Streeters in the New York Hamptons. Watch for Chinese buyers at the very, very top of the U.S. luxury market, especially in New York.  Eastern Europeans are also popping up as prospects in some U.S. markets.  Across all price points, Canadians still rank as the number one foreign buyers, followed by the Chinese.

All in all, without a fall off the U.S. debt cliff, a tidal wave from the Euro crisis, or an unpredictable black swan event, the luxury home market should continue to be healthy (and perhaps even grow) in 2013. If you are wondering just how big this market segment is, the $500,000 and above market represents 10% of sales and the $1 million and above market is about 1.6% of sales.  Luxury is a small, but desirable market niche and this is a good time to fine tune your  luxury strategy or target the luxury segment if you aren’t already.

Just how big is the second home market?

Another article that you may find interesting from Luxury Insights:

Just how big is the second home market?
Posted: 29 Aug 2012 05:04 AM PDT

Recent statistics from the Census Bureau reveal that nationally, about 3.5% of the housing inventory falls into the seasonal, recreational, or occasional use category.

The states that lead the list with the highest number of properties in these categories may surprise you.

Based on the 2010 Census (not released until almost the end of 2011) these are the most current stats available. Given slow new construction rates these numbers are still realistic.

Find more on housing data and statistics from the Census Bureau.

Living the High Life

From the WSJ LunchBreak: Living the high life
Posted by Waco Moore on Luxury Insights
Date posted: 17 Aug 2012 11:28 AM PDT

A peek at the trend of super-tall buildings for super-rich residents …read more

super high rise condos market for wealthy

The Inside Scoop on the Luxury Home Market in Silicon Valley

Re-posting after finding this on Luxury Insights.
Hope you find this of interest,
George

Date Posted: 10 Aug 2012 07:33 AM PDT

In our previous post we looked at some of the current market stats for Silicon Valley.

Statistics are one thing, but for an incredibly unique market such as the Silicon Valley where a high percentage of luxury homes never even hit the MLS, having the insider’s view and contacts is of paramount importance.

Dawn-Thomas-2011[1]That’s why we turned to Institute for Luxury Home Marketing member Dawn Thomas, broker associate at INTERO Real Estate Services and Founder of The Dawn Thomas Team to give us an up-to-the-minute pulse of what’s happening in her market.

What’s the typical starting price of your market:

DT – Everyday home prices are in the $1.5 million to $2 million range. The starting point for luxury homes is around $3.5 million. On the flip side, the highest priced home sold in either San Mateo or Santa Clara county so far this year is $15.3 million. Last year’s most expensive sale was $100 million.

How would you describe the pulse of your market?

DT – Days on market is trending better and we’re seeing prices increasing – not skyrocketing, but increasing. And we’re also seeing a lot of foreign investors. In fact, I have one buyer who is ready to purchase and will spend up to $40 million for the right property that he can pass on to future generations.

With that being said, this is also an election year so there are a lot of variables.

High-end homes are moving if presented well and there is no shortage of money here, but inventory is short.

What issues do you see that are impacting your market?

DT – The low capital gains tax that the Bush Administration put into affect is likely going to be over at  the end of the year and another issue is the 3.8 percent tax increase for health care (for more information on its impact to real estate transactions, click here) that will have an impact on both real estate purchase and sale decisions. I’ve actually had clients ask me about these issues, and from discussing this with other agents, these are definitely things luxury buyers and sellers are aware of.

Did Facebook’s IPO increase higher prices in your market or have the positive impact the media seemed to indicate it would?

DT – (Laughing) I wish I could say that all the hoopla about this did make a difference, but from what I can tell, I don’t think it really did. First of all, many of the people at Facebook are Gen Y’ers. And a lot of these employees live in the city and aren’t interested in luxury homes. They don’t want 10,000 square foot homes – they want smaller footprints with higher-end finishes. Additionally, many of these people can’t unlock their proceeds from the IPO until six months following the public offering – and this won’t occur until more towards the end of the year. The real truth of the matter is the Facebook frenzy just didn’t happen.