THE LATEST TRENDS IN LUXURY REAL ESTATE by chenmeixiu

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									THE LATEST TRENDS IN
LUXURY REAL ESTATE
A Study Among Upper-Tier
Real Estate Professionals
October 2005
METHODOLOGY
ABOUT THIS SURVEY:
• Between September 15th and October 10th 2005, Unique Homes
  conducted a survey among members of The Luxury Real Estate Council,
  a nationally representative body of upper-tier residential real estate
  professionals.

• Respondents included brokers, associate brokers agents, owners, and
  owner/brokers.

• Respondents were asked to provide feedback related to outlook and
  trends at the top levels of the luxury residential real estate market.

• This study was executed over the internet
  utilizing technology by SurveyMonkey.com.
LUXURY BUYERS
How urgent are they?
What are they looking for?
How are they paying?
What are their professions?
How important is the international buyer?
LUXURY BUYERS:

HOW URGENT ARE THEY?
• Only 2% of the upper-tier real estate professionals
  surveyed characterize the attitude of their luxury
  buyers as “Urgent, needs to buy quickly.”

• Approximately half (48%) said luxury buyers
  “Want to find the perfect house, no matter how
  long it takes.”

• 43% say luxury buyers are “Somewhat urgent to
  buy, but willing to spend SOME time looking for
  the perfect house.”
LUXURY BUYERS:


WHAT ARE THEY LOOKING FOR?
• Half of buyers of million-dollar-plus-homes are
  looking for a primary residence.

• 40% of buyers at this level are looking for a
  second home/vacation home.

• 10% are looking for an investment property.
LUXURY BUYERS

HOW ARE THEY PAYING?

• The majority (54%) of million-dollar-plus buyers
  are paying all cash for their homes.
• 19% of million-dollar-plus buyers are opting for
  30-year fixed mortgages. Only 4% are utilizing a
  20-year fixed mortgage.
LUXURY BUYERS

WHAT DO THEY DO FOR A LIVING?
• The most prevalent occupation luxury real estate
  professionals are seeing among million-dollar-plus
  buyers is „Entrepreneur‟ – cited by 76%.
• The second and third most prevalent occupations are
  „Investment and Finance‟, cited by 57%, and
  „Medicine/Healthcare‟, cited by 41%.
• „Real Estate‟ also made the list at 24% and
  „Entertainment‟ at 20%.
LUXURY BUYERS

FOREIGN INFLUENCE
• Two-thirds of respondents indicated noticeable
  activity from foreign luxury buyers in their respective
  markets.
• U.K. buyers represent the largest percentage (50%) of
  foreigners purchasing luxury real estate in the U.S.
• Canada was cited as the number two foreign purchaser
  (23%) of U.S. luxury real estate.
• Rounding out the top three is India at 15%.
LUXURY SELLERS
How urgent are they?
Why are they selling?
LUXURY SELLERS

HOW URGENT ARE THEY?
• Three-quarters of luxury sellers „will negotiate
  some on price, but not much.‟
• 11% will not refuse any reasonable offer.
• 14% „know the price they want, and are willing to
  wait if necessary.‟
LUXURY SELLERS

WHY ARE THEY SELLING?
• 48% are downsizing by choice.
• 16% are selling to move-up to a bigger or more
  expensive home.
• 14% are relocating for personal reasons;
  5% are relocating for work reasons.
• 16% of respondents chose „other‟ – the answers given
  ranged from “Returning to their home country” to “They
  feel prices are about to go down and they want to catch
  the crest of the wave, so they will list and wait for their
  price.”
STYLES, FEATURES &
AMMENITIES OF
MULTI-MILLION-DOLLAR
HOMES
STYLES, FEATURES & AMMENITIES

POPULAR ARCHITECTURAL
STYLES FOR LUXURY HOMES
• „Spanish/Mediterranean‟ ranked as the most
  desired style of luxury home today.
• „Contemporary‟ ranked as the second most
  frequently requested house style.
• The styles rounding out the top five were
  „Georgian‟, „Colonial‟ and „Southern Plantation‟,
  respectively.
STYLES, FEATURES & AMMENITIES

PREFERENCES GEOGRAPHICALLY

• Florida, California & Texas: Spanish/Mediterranean
• Virginia: Colonial
• Georgia: Southern Plantation
• New Jersey: Contemporary
• Maine: Contemporary, Georgian, Arts & Crafts (tie)
STYLES, FEATURES & AMMENITIES

TRAITS THAT MOVE $ MILLION
PROPERTIES
• Nearly seven in ten respondents chose both „Location,
  Location, Location,‟ and „Breathtaking views‟ as the
  most desirable elements of a luxury property.
• „Privacy,‟ „Proximity to water,‟ and „Size/Square
  footage,‟ came in third, fourth and fifth.
• The traits LEAST LIKELY to move a million-dollar-
  plus property are „Proximity to town center,‟ „Noted
  architect‟ or „famous owner‟. „Willingness to sell with
  furnishings‟ came in last.
MOST EXPENSIVE SALES: 2005
LOOKING AHEAD: 2006
MOST EXPENSIVE SALES AND LOOKING AHEAD

MOST EXPENSIVE SALES OF 2005

• 34% reported their highest-priced sale in the range
  of $1 million to $1.99 million.

• 38% had a top sale in the $2 million to $4.99
  million range.

• 18% made the $5 million to $9.99 million range.

• 10% struck real estate gold with a sale in excess of
  $10 million.
MOST EXPENSIVE SALES AND LOOKING AHEAD


A POSITIVE OUTLOOK FOR 2006

• The majority of top real estate professionals (57%)
  anticipate an increase in their annual commissions
  next year.
• 27% think their annual income will stay the same.
• Only 16% predict a downturn.

								
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