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.

The Green Valley Ranch Resort and Spa just outside Las Vegas was the setting for the 2009 Region 11 meeting on February 22-24. Our 2009 Regional Vice President, Keith Kelley, ABR, CRS, hosted the event in his home state with Leadership from our six state region in attendance. Nearly 200 members and staff from the states of Arizona, Colorado, Nevada, New Mexico, Utah and Wyoming attended the event.

Monday morning’s meetings kicked off with a breakfast buffet, followed by a panel of government affairs speakers which included Colorado’s own Rachel Nance, CAR Vice President of Public Policy and Chief Lobbyist. The other panelists were Tom Farley, CEO and Lobbyist for the Arizona Association of REALTORS®; Rocky Finseth, Chief Lobbyist for the Nevada Association of REALTORS®.  The speakers primarily addressed emerging legislative issues in their respective states. Of particular import across the board, were revenue generators and consumer protection issues. In this tough financial climate, all the states seemed to indicate that government entities were struggling to raise new revenue in creative and sometimes onerous ways.

Laurie Janik, General Counsel for the National Association of REALTORS® gave an update on national legal issues. In particular, she updated us on the changes to NAR’s VOW policy and the importance of compliance by February 2009. A pdf file of Frequently Asked Questions can be found by logging in to http://www.Realtor.org and then using this link: http://www.realtor.org/wps/wcm/connect/d1ba94004cfa54349ceffe8d0a12d865/VOWFAQsUpdatedFeb092009.pdf?MOD=AJPERES&CACHEID=d1ba94004cfa54349ceffe8d0a12d865

Teresa McKee, Nevada Association of REALTORS® Legal Counsel and Curtis Bullock, Utah Association of REALTORS® Legal Counsel addressed their state issues. John Harrison, RPAC National Fundraising Chair spoke about last year’s amazing results, and stressed the importance of our voluntary contributions to address legislative challenges springing up on local, state and national levels.

Las Vegas Mayor Oscar Goodman welcomed the group to Las Vegas at a Monday luncheon. Our keynote speaker was Dr. Lawrence Yun, NAR’s Chief Economist. His remarks included some positive news for our Region, including the fact that the Las Vegas market was one of the first in the nation to experience a housing crisis, but he expects will be one of the first to recover. He was positive about Colorado, as well, mentioning that we were not as damaged as the period post-9/11. He believes that recessions in the past were more influenced by interest rates than by job losses, which bodes better for this situation. Also, the credit explosion, not the housing bubble, caused many of our problems on a nationwide basis. Additionally, the 50 year low mortgage rates are a once-in-a-lifetime opportunity and savvy consumers will ultimately take advantage of them, creating a cautious demand.

Colorado’s State President, Amy Dorsey, CIPS, MRE, GRI, CRS, RSPS and CAR CEO Robert Golden, RCE, spoke about CARHOF (Colorado Association of REALTORS® Housing Opportunity Fund) and the success of the Foreclosure Hotline which provides assistance to consumers. Colorado is a leader in the nation with programs like these.

Kipp Cooper, Government Affairs Director, Las Vegas, spoke about the new Quality of Life graffiti-fighting program. With graffiti a large problem, they have enacted a multi-tiered approach to protecting private property rights.

Our Tuesday luncheon speaker was Marcel Bryer from Fannie Mae who spoke about challenges and opportunities in the present time and answered audience questions, many of which focused on handling of REOs and foreclosures.

Kay Watson was the spokesperson for the Ira Gribbon Workforce Housing Grants.  Further information is found at: http://www.iragribbon.org  Grant applications are due by December 10.   Applicants must be non-profits.  $5.2 million will go to this project.  CAR hopes to obtain funding which will aid CARHOF. 

Vicki Cox Golder, 2009 National Association of REALTORS® President elect and a member of our Region from Arizona, spoke about the new NAR “Right Tools – Right Now” initiative. This program offers members many free and reduced cost products. For more information, log on to www.realtor.org and use this link: http://www.realtor.org/prodser.nsf/RightTools/ToolsHome

Region 11 then held the traditional Caucus where we come together to attend to business issues.  The six State Presidents introduced their respective Leadership teams and each spoke about key issues that had not already been covered.

Random Thoughts: Chris McElroy has been selected as the alternate to the NAR Nominating Committee for a two-year term. The group discussed our annual convention to be held this year in San Diego. “Chart a Winning Course” will be the theme and further information is available at: http://www.realtor.org/convention.nsf  or you can follow updates (tweets) at: http://twitter.com/nar2009

In summary, there was a great deal of useful information packed into a two day period. It was one of the best Regional meetings I’ve ever attended, with excellent participation, provocative speakers, and lots of useful information.

Western Resort Towns, Boston, New York, and Denver continue strong in the Luxury market segment

Sales of luxury homes continue to outperform the rest of the market in many key locations, according to David Leonhardt from The New York Times.

Several causes seem to be in evidence including the fact that higher income buyers continue to experience strong income gains and a rising stock market, and foreign investors have more buying power with the continued decline of the dollar against other global currencies. Additionally, the increasing interest rates affect lower and middle income families on a larger scale, while many upscale buyers rely more on cash.

Cities including Boston, New York City, San Jose, Calif., Seattle Denver, and Houston have posted year to date luxury numbers comparable to 2005, a boom year. Other key markets appear to be trending in that direction as well.

Numbers in the second home resort market continue to rise as well, with record appreciation increases and record sales in places like Breckenridge, Colorado, Aspen, Vail, Telluride, and Park City, Utah.

All of these are continued reasons to engage a local Realtor© to track the specifics of the market you are considering. With up to date information and a Realtor to guide you through the history of the market, you will maximize your long term investment potential.

Summit County Investment trends echo trends of the US Luxury Market.

The Wall Street Journal reports that popular luxury homes these days include lots of specialized spaces for their owners. Rooms like wine cellars, craft rooms, media or home theatre rooms, separate double baths for master suites, and walk in pantries are among the amenities noted in many high-end homes. Many of the newer homes often have a sunroom or family room instead of a formal dining room as well.

These trends seem to be echoed in many of our luxury category of mountain homes. More of the newer upscale homes have wine cellars, elaborate theatres with graduated seating, open dining areas which create a warm gathering atmosphere, and plenty of “escape spaces” so that family members have space for privacy during their mountain playtime.

Another current trend is the escalation of investment into “cocktail ranches” where the acreage and peaceful surroundings provide time away from the hustle and bustle of the mainstream tourist visitors. These ranches provide a great entry into the mountain community without the upkeep or hassle of a full-blown working ranch.

With all indicators showing today’s busy entrepreneurs and executives savoring their downtime, these trends show no sign of slowing. Call us today to find the right property to fit your busy lifestyle and invest in your piece of paradise. Don’t forget that, with our network of professional affiliates, we can assist you in investing in real estate all over the globe.

A brief update on market conditions in Summit County Colorado ski  & investment properties

Well, 2007 is shaping up to be an amazing market for top end luxury properties in Summit County, Colorado! In the $2.5 million and up category, there were only nine properties sold in 2005, while in 2006 only four sold. This year sales are already at three and selling season is just starting. Prices are also reaching $550-600 per square foot in some cases, which is breaking all records.

In addition, days on market numbers are going down too. Since good land is getting scarce, buyers are realizing that some of the new homes and resales are a great option. It is still critical that the home is priced properly and a good lot and floor plan are essential. That said, those homes that meet these criteria are selling through.

The local Summit County market has rarely seen any fall off through the last fifteen or twenty years. It tends to run with the stock market, so when the market is strong, so is the real estate market. Don’t be misled by naysayers who talk about the soft market conditions in other parts of the country! Our market is booming. Come talk to us about investing in your Colorado dream house.