Having just attended a Who’s Who in Luxury Real Estate conference with a group of preeminent luxury real estate practitioners from all over the world, it seems a good opportunity to give an overview of what’s happening currently in the luxury market and hopeful trends on the horizon.

First of all, it appears sales are definitely increasing. Particularly in coastal markets, price corrections seem to have been achieved and REALTORS® are even seeing multiple offers again in many markets. For those of you watching for the “bottom” of the market, it appears that there are signs in many markets that prices are starting to rise.

Trends have emerged, though. It has never been more important to hire a REALTOR® to assist in analyzing the market. Pricing is sometimes arbitrary and it is important to understand the local market with the professional’s help to ensure that you are truly getting a value opportunity. A REALTOR® is also important to assist in the newly complex world of financing the property. Lenders have new guidelines, some of which can be cumbersome. A well qualified mortgage professional, working with you and your REALTOR®, will streamline the process and make it much easier. Rates are still at historic lows, so often you save additional money over the time value of the note.

In Santa Barbara, for example, the middle market is holding its value, but there are a few opportunities in the high end and lower end of the market. Similarly, other ski resort communities are seeing prices holding steady throughout, clearly because our areas are heavily fueled by past cash transactions and are often held by second homeowners who don’t necessarily feel the pressure to sell. Arizona and southern California are roaring back, with lots of activity. If you want to purchase something, prices are already creeping upward again.

In the Summit County, Colorado and Breckenridge markets, there are actually more sales in the very highest end of the market than at this time last year. There is considerable inventory in the lower end of the luxury price ranges, though, so there are a few strong value opportunities. Summit County is historically a great solid investment area, with local prices and values not experiencing the dramatic swings that other areas such as Florida and California sometimes do.

When considering a second home or investment, however, do not concentrate on the “deal” as much as solid criteria for selecting the property. First of all, the floor plan should be a good one and suit today’s lifestyle and your needs in particular. You can remodel with more recent finishes, but the fundamental “bones” of the home need to work well.

The location is important and your REALTOR® can assist in discussing on-mountain versus town versus remote locations. Your selection will be based on how you will use the property yourself and your lifestyle needs. A view is often a sought-after feature and, thus, is valuable for resale. Remember that to be a solid long term investment, it is important to choose a residence with broad appeal. The same things that attract you to the home will help sell it when the time comes.

When looking for a second home, according to the National Association of REALTORS® surveys, location is number one. Additional features that are important to luxury buyers include well designed kitchens, main floor master suites, bedroom-bath suites for secondary bedrooms, a separate “family” or media room, storage, and updated bathrooms.

As the economy strengthens, it has never been a better time to invest in a solid market like ours. This is the perfect time to consider an investment you can enjoy which fits into your long term investment strategy. If you need a real estate expert anywhere in the world, email me at: bonnie@bonniesmith.com and I will make the introduction for you.

Summit Association of Realtors Recognizes Bonnie for Realtor and Community Contributions

The Summit Association of Realtors, in the heart of Colorado’s High Country, held their annual Installation Banquet for their incoming Board of Directors last week. At the event, Bonnie Smith, ABR, CIPS, CRB, CRS, GRI, MRE was named 2007 Realtor® of the Year. The award was given in recognition for service and support to the Board of Directors, local, State and National Association members, and for service to the Summit County community. The REALTOR® of the Year Award is given to the member who has shown outstanding leadership, commitment, and skill in the real estate industry. Candidates are judged on contributions to the industry, outstanding qualities, and any additional factors that set the individual apart in the award year. “This honor is voted on by peers and competitors so it is very special to me,” Smith said.

At the awards ceremony, a video traced the highlights of Bonnie’s life so far, including her Leadership and community service. Bruce F. Wolf, National Association of Realtors Treasurer, and his wife Mary, flew in for the surprise presentation.

Ms. Smith is Owner and Managing Broker of Exclusive Mountain Retreats Real Estate in Breckenridge, Colorado. She is a member of Luxury Real Estate’s Board of Regents. Bonnie is presently serving the local Board as a State Director, the Colorado Association of Realtors as Vice President, and serves on several National committees. She is a Golden R donor for RPAC on the National level, as well as a member of the NAR President’s Circle. Last year she was one of thirty eight national “Ambassadors” to the New Orleans convention, working for ten months on the effort to raise Realtor consciousness in the aftermath of Katrina. The event gathered 26,000 Realtor attendees, brought $34 million in revenue to the New Orleans community and resulted in 54 homes built in the Gulf Coast region.

Along with partner, Rodney Allen, Bonnie finishes the new RSPS certification and shares information with real estate professionals from all over the world.

Last week I attended the 4^th National Association of Realtors Resort Symposium held this year in Vail, Colorado. Realtors from all over the United States and real estate professionals from all over the world attended to discuss issues and share marketing, management and technology ideas. The previous three symposiums have been held in Cabo San Lucas Mexico, Cape Cod, Massachusetts and Hawaii.

It was a dynamic group with lots of old friends from NAR Leadership and Luxury Real Estate, and new friends from all points in attendance. Highlights included finishing the coursework for the new Resort and Second Home Property Specialist certification. This new program from the National Association of Realtors provides specialized training for resort and second home markets all over the globe. It also provided an opportunity to catch up with realtors from all over to discuss their changing marketplaces.

The common thread seems to be that only a handful of primary markets are experiencing a real downturn or at least a slowdown. Most of the resort markets were hot, hot, hot, with escalating prices and values, consistent appreciation, and plenty of activity.

One of the most interesting statistics that was noted was that last year, 39% of home sales were second home and resort properties! With the baby boomers still coming of age over the next decade, this shows no sign of changing anytime soon.

Thus, it’s a great time to invest in mountain property, and Breckenridge and Summit County are still a relative value. Call us if you’d like the specifics on a Rocky mountain investment. Both Rodney and Bonnie hold the CIPS (Certified International Property Specialist) Designation which means they are among an elite group of professionals who have completed a course of study in International real estate investment and have demonstrated a proven track record in working with International buyers and sellers. As always, our network of international associates can assist you with your investments anywhere in the world. Give us a call and we can help! 

At Mid Year meetings for the National Association of Realtors, realtors and leadership meet with legislators on Capitol Hill

I write this today from the National Association of Realtors Mid-Year Meetings in Washington D.C. Realtors from all over the country converge this week on our seat of government for meetings with various leadership committees, as well as to meet with legislators from their respective states on Capitol Hill.

 When I first attended this week of meetings, I was struck by the commitment level of our government officials and saw them in a totally different light. After all, here they are working at their jobs- they are not engaged in the process of running for office. The dynamics are different and their focus is clear. It was a revelation. I came back and made the commitment to the Realtor organization to financially support our Realtors Political Action Committee and to become more involved and informed.

Last night on 60 Minutes, I was distressed to see a very one-sided segment on Realtors by Leslie Stahl. She focused primarily on the monetary aspects of the Realtor debate, without giving justice or understanding or even a cursory discussion about service, consumer protection, or ethical standards of representation.

Some of you reading this and watching that segment will undoubtedly be other Realtors, some will be real estate practitioners, and some will be members of the public. So, this got me thinking….

We spend a great deal of time talking about the “branding” of the Realtor “R.” I am a member of the Colorado Association of Realtors’ Public Relations committee which runs media campaigns across the state which ask, “Why use a Realtor?”  I am also a member of the National Association of Realtors’ Communications Committee which oversees our publications and the national advertising which also says, “Make sure your agent is a Realtor.”

There are many reasons to choose a Realtor given in these media vignettes. Perhaps the most compelling reason to choose a Realtor is this: Realtors are here in Washington D.C. and in their State governments, and their local Town meetings and City Councils fighting every day for private property rights for each and every American. We represent everyone- not just the big developers, but the “little guy”- the first time home buyer who is struggling to save enough money to put a down payment on his or her first property. We help every American realize the American dream of home ownership!

Many things in our country affect the way our citizens function on a daily basis. Your Realtor does not pretend to cure cancer, set the price of oil, or negotiate trade agreements to lower food costs. However, your Realtor and 1,350,000 members of our Association represent you every day in the battle to get ahead in your daily life by supporting your right to YOUR piece of the pie- your home.
So, why am I a Realtor? Because, at the end of the day, I believe in being part of something bigger than myself. I believe that as a part of the largest trade association in this country comprised of independent business owners who compete with each other every day, I can make a real difference. I invite you, as we near our 100^th anniversary of the National Association of Realtors to recognize, as I do, that Realtors directly affect the quality of life for millions of Americans every day. To me, that makes all the difference.