Wednesday, March 10, 2010

WSJ: Luxury Real Estate Market is coming back to life

Real Estate volumes in Steamboat have doubled over the last three months that data is available from the previous year and I personally have seen strong buyer interest over about the last year as people look and often act on the chance to secure the perfect home in Steamboat. People still want to spend at least as much time here and want to bring their families together either as they see the last few years with kids at home or want to get as much time as possible with their grandchildren, others just want to get here for the recreation and a healthier lifestyle.

Prices can be 20-40% lower depending on the property and some of the best are available at these prices instead of choosing from slim inventory like was the case in 2007. It's not as easy as just comparing current and previous pricing though since the value in any particular property may still be below even a substantial discount given pricing in 2007 may have been beyond value and it really depends who owns a particular property and it's comps. You really have to know the local landscape in detail but if you do some opportunities will likely reveal themselves.

I am fortunate to have had a busy year already with multiple clients securing luxury properties including my largest single family property transaction to date. It was one of the best properties available quality and location wise and sold for 43% off original list, about $1.5m less than an offer the sellers had previously rejected. Both a large discount and a great value without considering that a lot that would be very hard to sell in this market was included as a trade for a very good price that I wouldn't have been able to get in the open market. As our market consolidates there will be more opportunities for deals like this. I have several in mind and a great set of friends that are actively looking right now. Give me a call at 970-819-6930 if you are curious to know more.

I've included some quotes from the article here: " At long last, the market for luxury real estate is coming back to life. Prices for primary residences, which plunged at least 20% from the peak in 2007, appear to have bottomed. In some of the snappiest locations, scattered bidding wars are breaking out and prices are turning upward.

In Greenwich, Conn., realty brokers say, the final months of 2009 were almost record-setters for sales volume, as two years of pent-up demand was unleashed. Even the megadeal is back. In Beverly Hills, film producer Jeffrey Katzenberg just plunked down $35 million for an 8,700-square-foot home on six acres.

There's nothing like a stabilized economy and a huge rebound in stocks to send folks looking for the perfect manse. Prices are way down–40% off the peak in some locations. Seemingly at or near bottom, they are starting to attract the first wave of bargain hunters–and not just families in need of R&R. Hard-nosed investors also are on the prowl, says Jan Reuter, head of residential real estate at U.S. Trust Bank of America Private Wealth Management: "We've seen an uptick in buying in just the last couple of months."

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