by The KCM Crew on December 7, 2012
Updates from December, 2012
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by The KCM Crew on September 12, 2011
It has been a trying time for most segments of the real estate industry. However, two areas that are showing improvement are the luxury home and vacation home markets. It seems that people in these segments are again beginning to purchase.
Last week Market Watch published an article discussing the vacation home market. Dan White, president of Daniel A. White & Associates, a wealth-management firm in the Philadelphia area, was quoted in the article.
“A lot of people are worried about the [stock] market today because of the volatility and the fact we could be going into a double-dip recession. They’re looking for other avenues. Real estate, if we’re not at the bottom [in prices], people think we’re pretty darn close.”
The article also explained some purchasers are seeing this as an opportunity to buy a vacation/retirement home:
“Some baby boomers are seizing an opportunity to get a deal on a vacation home they can enjoy now but that’s also a home that eventually will become their primary residence when they retire.”
Along with the vacation home market, the luxury market has also made a comeback. HousingWirereported on the luxury market last month:
“In the nation’s top 20 markets, million-dollar property sales rose 18% in 2010 with a 21% increase in California, said Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing, a Dallas-based firm…
In Miami, 517 properties sold for $2 million or more during the first seven months of 2011, up nearly 16% from a year earlier.”
If you are in a position to move-up to the home of your dreams or have been thinking about a vacation home for the family, now might be the time to make the move. Print This Post
By Steve Cook
RISMEDIA, July 12, 2011—While a third of homeowners struggle to stay above water on their mortgages, nearly a quarter of those in the upper income tiers have been trading up to take advantage of deals in the luxury home market.
Lured by lower prices, one in four U.S. consumers with annual income of $150,000 or more have bought a residential property since 2008 at a median purchase price of $509,000, up 3.2 percent from the 2005 to 2007 period. Most new residences (83 percent) are single-family homes and two-thirds of these are in suburban settings. Seventeen percent plan to purchase additional property this year, while 23 percent of those younger than 50 plan to buy in 2011.
According a new survey by the Luxury Institute and the Institute for Luxury Home Marketing, high net-worth homeowners are taking advantage of the downturn to trade up into higher-priced new primary residences. More than one-third (37 %) of the wealthy value their homes at $1 million or higher, while 32% assess their primary residence to be worth $500,000 or less.
Seventy percent of wealthy home buyers used a real estate agent to help with their property purchase and two-thirds of those say that they would work again with the same agent.
“Luxury home buyers recognize that many premium homes are available at relative bargains,” says Milton Pedraza, CEO of the Luxury Institute. “Similar to the luxury retail landscape, luxury home sales provide more evidence of durability at the high end of the market.”
“Luxury is the good news story in real estate,” says Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing. “The number of wealthy households has jumped back to pre-recession levels and affluent home buyers are actively purchasing. The National Association of REALTORS®’ statistics show that national home sales at $1 million and above were up more than 18 percent year-over-year in 2010. Strong activity continues this year as well.”
For more information, visit http://www.realestateeconomywatch.com. Print This Post
The recent record-setting home sale on Longboat Key puts the Spotlight on the Most Expensive Homes on the MarketPublished: Sunday, May 1, 2011 at 1:00 a.m.
Last Modified: Thursday, April 28, 2011 at 4:14 p.m.
OK, you missed your chanceat the mansion in Longboat Key Club’s Regents Court that just sold for an island-record $12.5 million. But don’t fret. There are many other extremely high-end homes still on the local market. (More …) Print This Post
By Steve Cook
RISMEDIA, May 5, 2011—It’s still very much a “cold” buyer’s market according to the Institute for Luxury Home Marketing’s April 24 Luxury Housing Report, but early numbers from the spring home buying season suggest that demand is warming up.
Inventories of homes over $1 million built up over the winter, but even with more properties coming on market with warmer weather, increasing the national inventory from 27,500 to 32,500 since January, days on market have dropped markedly in recent weeks. (More …) Print This Post
by The KCM Crew on March 14, 2011
There is an interesting phenomenon taking place in the real estate market. While house prices are falling, the rich are starting to purchase. DataQuick Information Systems reported last week that sales on homes $1 million or more rose 18.6% last year after four consecutive years of decline. This is at the same time that sales outside of this price point actually fell 2.8%.
And even more amazing is that homes over $5 million have also increased substantially. Housing Wire reported that:
In 2010, 975 homes sold in this bracket, up nearly 14% from the year prior.
Why would the wealthy be starting to purchase especially when everyone is predicting that prices will soften? The people of wealth understand finances. They realize that the COST of real estate is a much more important than its PRICE. With the government attempting to make massive changes to the residential lending business, the wealthy know financing a home may never be better. They realize it is time to buy. They can purchase a million dollar+ home for a rate lower than at almost any time in history. Print This Post
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