Here's some positive news from Wells Fargo.
Read about it here.
George
Posts
Housing Prices Down, but so is Housing Glut
7 years ago
Friday, December 31, 2010
Thursday, December 30, 2010
Skiing Telluride!
 |
| George & Becky Harvey 12/30/10 |
Come join us!
George and Becky
Wednesday, December 29, 2010
Telluride: Prettiest Ski Town
Here's a link to Sunset Magazine's Best Ski Towns in the West. Does your favorite destination make their list?
Enjoy!
George
Enjoy!
George
Friday, December 17, 2010
Wednesday, December 15, 2010
Austerity, Wall Street-Style article
There's good news at the end of this article by Robert Frank at the Wall Street Journal.
Booking Yachts Is Out, Carpooling on Private Jets Is In as Boffo Pay Ticks Lower
One area where bonus spending remains strong is real estate. But bankers are redefining their ideas of a summer cottage. Rather than buying or renting ...
2011 Colorado Resort Job Growth Forecast per Economist
Here's an uplifting news article about the Colorado resort economy for 2011!
Resort valleys forecast small job growth in ‘11
Economist reviews Colorado
DENVER, Colo. – Resort-dominated counties in Colorado will see employment growth in 2011, according to a projection of the Colorado State Demography Office given at a November conference.
“Mountain resort communities were hit very hard by the recession, but at the same time, they are one of the industries that I expect will do—I wouldn’t say well, but OK—in 2011,” says David Keyser, an economist with the state office.
Eagle County (Vail) stands out. Mr. Keyser forecasts a gain of more than 2.5% in employment next year. In 2012, he sees a gain of between 3.1% and 5.5%. He forecasts more rapid employment growth in other mountain resort counties of Colorado, but none quite as much as in Eagle County. “I expect a 2 percent job growth in tourism overall—which is pretty good,” he said.
He bases his projections for the resort counties on the idea that they draw business from other parts of the country, but particularly the nation’s more affluent sectors, which have not been as deeply affected by the recession.
This has been confirmed in reports during the last year from resort valleys of the West, where the high-end real estate markets have returned most rapidly, even if prices remain deeply discounted from the 2008 wish-for list prices.
More broadly in Colorado, population growth has continued even during the recession. As it always has been, and maybe always will be, growth has been greatest in metropolitan Denver-Boulder area. The state, now with a population of just over 5 million, is projected to hit 6.2 million in the next decade.
Monday, December 13, 2010
Telluride Market Holds Steady
I found this Telluride Daily Planet article while surfing the web and thought you might find it interesting, too.
Sincerely,
George
George Harvey
TheHarveyTeam.net
Telluride, Colorado
970-729-0111In a shaky market, Telluride holds steady
The Daily Planet
“I don't believe that all this great news has gotten us to the end zone,” Riley said, noting that retailers are still struggling, real estate activity have ...
Telluride Tops the Rankings!
Here's some great news about our region received via my Telluride Ski and Golf newsletter!
George
Consumers Doubt Housing Market is Turning Around per survey
I thought you might find this article of interest.
Enjoy!
GeorgeFriday, November 26, 2010
Bigger Planes into TEX by Christmas 2011
Thought some of you (and your clients) might find this article interesting!
Enjoy!
George
by Seth Cagin- Watch Newspapers
11.19.10 - 10:56 am
TELLURIDE - The Telluride Regional Airport is prepared to make improvements to its terminal to accommodate bigger planes in time for the 2011 holiday season, provided that the Telluride-Montrose Regional Air Organization is able to bring flights to the airport by then.
The improvements to the terminal are necessary to meet security requirements, through the creation of a larger space for passengers to wait after being cleared through security. Plans are in place to make the improvements at a cost of about $1.5 million.
And while the airport board has budgeted for the improvements in 2011, it will not necessarily pull the trigger on construction until and unless flights are scheduled.
The airport can accommodate bigger aircraft as of this year due to a $50 million runway improvement that was completed this summer. But whether airlines will utilize the airport is a separate question.
The Regional Air Organization will be n egotiating with airlines to obtain flights to TEX in the spring. If flights are secured, that will allow sufficient time for the necessary terminal improvements to be completed, Jon Dwight , who serves on both the air organization and airport boards told the air organization board.
Scott Stewart, director of the air organization, told the board on Friday that he did not believe airlines would be concerned by the fact that the terminal improvements are merely approved and funded but not yet constructed when they consider whether or not to schedule TEX.
Improved air service to Telluride has been a long-term goal for both the Telluride Regional Airport and the Regional Air Organization, and is now possible since the biggest obstacle, the runway improvements, are complete. To the same end, the airport is also weighing whether to seek approval for commercial flights in and out of TEX after dark.
Air service to TEX has steadily declined over the last decade as service to the Montrose County Airport has improved.
The improvements to the terminal are necessary to meet security requirements, through the creation of a larger space for passengers to wait after being cleared through security. Plans are in place to make the improvements at a cost of about $1.5 million.
And while the airport board has budgeted for the improvements in 2011, it will not necessarily pull the trigger on construction until and unless flights are scheduled.
The airport can accommodate bigger aircraft as of this year due to a $50 million runway improvement that was completed this summer. But whether airlines will utilize the airport is a separate question.
The Regional Air Organization will be n egotiating with airlines to obtain flights to TEX in the spring. If flights are secured, that will allow sufficient time for the necessary terminal improvements to be completed, Jon Dwight , who serves on both the air organization and airport boards told the air organization board.
Scott Stewart, director of the air organization, told the board on Friday that he did not believe airlines would be concerned by the fact that the terminal improvements are merely approved and funded but not yet constructed when they consider whether or not to schedule TEX.
Improved air service to Telluride has been a long-term goal for both the Telluride Regional Airport and the Regional Air Organization, and is now possible since the biggest obstacle, the runway improvements, are complete. To the same end, the airport is also weighing whether to seek approval for commercial flights in and out of TEX after dark.
Air service to TEX has steadily declined over the last decade as service to the Montrose County Airport has improved.
Watch Newspapers
Thursday, November 18, 2010
Luxury Homes Rally by John Rebchook
Thought you might enjoy this blog article I received via: 
Luxury Homes Rally
November 16, 2010 - John Rebchook
Buyers snapped up 47 homes in the Denver area in October priced at $1 million or more, a 26% increase from October 2009. That is a marked improvement from September, when the luxury home buying market to a nose-dive. Read more...
November 16, 2010 - John Rebchook
Buyers snapped up 47 homes in the Denver area in October priced at $1 million or more, a 26% increase from October 2009. That is a marked improvement from September, when the luxury home buying market to a nose-dive. Read more...
Friday, November 12, 2010
Sunday, October 31, 2010
100 Top Professionals - Luxury Real Estate Conclave
George R. Harvey, Jr. joins 100 top professionals at invitation-only luxury real estate conclave
“Leaders in Luxury” event draws top luxury real estate professionals to Austin (TX)
Thursday, October 28, 2010
WSJ Article - Foreclosures and Short Sales
This is an interesting article talks about where / who is feeling the impacts of today's market. Is your state listed here?
Click to read the full article - What the 'Foreclosure Crisis' Means for You
Wall Street Journal
But the fallout from the crisis is beginning to be felt in real-estate markets across the ...
Wall Street Journal
But the fallout from the crisis is beginning to be felt in real-estate markets across the ...
Sincerely,
George
George R. Harvey, Jr.
President of Colorado Association of Realtors 2010
Owner/Broker, The Harvey Team
P.O. Box 2283, Telluride , CO 81435
970-729-0111 cell
Tuesday, October 26, 2010
Top 5 Most Expensive Private Yachts in the World
This was shared by Fanis Zacharis who is in one of my networks! Enjoy!
Top 5 Most Expensive Private Yachts in the World
Top 5 Most Expensive Private Yachts in the World
Wednesday, August 11, 2010
From Rismedia - 6 Reasons to Buy a Vacation Home Now
Here's a great read from Rismedia about buying a vacation home now.
RISMEDIA, August 11, 2010—As the real estate market continues its bumpy road toward recovery, the vacation home market is heating up, causing homeowners around the country to seriously consider buying the vacation home they’ve been eyeing.
Margaret La Grange and Christine Van Tuyl, an award-winning mother-daughterteam with Prudential California Realty in Coronado, CA, offer the top... read more
RISMEDIA, August 11, 2010—As the real estate market continues its bumpy road toward recovery, the vacation home market is heating up, causing homeowners around the country to seriously consider buying the vacation home they’ve been eyeing.
Margaret La Grange and Christine Van Tuyl, an award-winning mother-daughter
Saturday, June 19, 2010
Global Wealth Increasing
Thursday, June 10, 2010
Dear Luxury Professional:
Please find a link to a very compelling report on global wealth entitled, "Regaining Lost Ground," resurgent markets and new opportunities.
The report describes several strategies and operating levers such as price, retaining & winning clients and how wealth managers can improve risk management.
North America for example posted the greatest absolute gain in wealth at $4.6 trillion while the largest percentage gain occurred in Asia/Pacific where wealth increased some 22%.
There are now 11.2 million, "millionaire households" in the world today with roughly half (4.7M) in the United States!
The highest density of millionaires exists in Singapore, Hong Kong, Switzerland and The Middle East.
I found this to be interesting reading and something worth reviewing as the economy begins to incrementally improve and buyer activity increases:
Monday, May 24, 2010
Interesting Denver Post Article
Big chill on mountain resort areas' home sales beginning to thaw
By Margaret Jackson
The Denver Post
Wednesday, May 19, 2010
Miami Condo Buyers Paying Cash
Published: 19th May 2010
Miami: 83% of condo buyers pay cash
According to a new report from Condo Vultures, only 83 percent of the more than 700 new condo sales in Greater Downtown Miami in Q-1 of 2010 were from cash buyers.
It seems the local market in South Florida has some way to go but overseas investors, paying cash, appear to be leading a mini boom.
Tuesday, May 18, 2010
Sinapore Resort Opens
On April 27th Las Vegas Sands CEO Sheldon Adelson snipped the celebratory ribbon at the Feng Shui approved time of 3:18 pm for his new Marina Bay Sands, an ambitious $5.7 billion (USD) luxury resort development in Singapore.
The Singapore government originally chose Las Vegas Sands Corp. (NYSE:LVS) on May 26, 2006 to build one of only two approved integrated resorts in the Southeast Asian city-state. Marina Bay Sands will open progressively over the course of the year, with today's first phase including 963 hotel rooms, parts of the shopping mall and convention center, some restaurants and bars, the Event Plaza along Marina Bay, and the casino. On June 23, during the official grand opening celebration, the remainder of the property's 2,560 guest rooms, more shops from the world's leading retailers, additional dining options, and exciting nightlife offerings, will open. The Sands SkyPark, which sits 60 stories off the ground and is perched atop the property's three hotel towers, will also debut on June 23.
"Singapore's reputation as a world-class international tourist destination will be further enhanced with the opening of Marina Bay Sands and our company's reputation for building economy-changing tourism developments will be cemented around the world. For both of those reasons, I am happy to be in Singapore today to open the first phase of the property and look forward to the grand opening celebration," said Mr. Adelson.
"We are proud to have a fine team of people with the professional skills needed to build Marina Bay Sands, open it, and operate it. With that team, we are confident we will deliver the promise of a facility Singaporeans expected when they honored us with this opportunity," said Michael Leven, president and chief operating officer of Las Vegas Sands.
Mr. Adelson said its unique urban location provides Marina Bay Sands an opportunity to become one of the world's most successful hotel-resort properties. "The peak period of operations for most urban hotels is midweek, as they tend to cater to business travelers. The peak period for resort hotels is obviously the weekend when people have free time. For us, with our meeting and convention business and a multitude of leisure amenities, the entire week is our peak period," he said.
The company's industry-leading experience in the MICE (meeting, incentive, convention and exhibition) business was a key reason Singapore selected Las Vegas Sands. To date,
Marina Bay Sands has more than 160 events booked in its Sands Expo and Convention Center. Those events, beginning in May 2010, are expected to draw more than 250,000 total attendees. Marina Bay Sands President and CEO Thomas Arasi said those numbers will increase quickly and dramatically as meeting planners and convention organizers now have the opportunity to see the property themselves.
"This is a magnificent destination. From the specially-commissioned, multi-million dollar collection of art that greets you as you enter our hotel lobby to our attentive staff taking care of your every need after you check in, Marina Bay Sands is committed to making sure the interiors and service of our property matches the brilliance of its architecture," said Marina Bay Sands President and CEO Thomas Arasi.
In October, one of the property's two state-of-the-art theatres will welcome Disney's The Lion King. The second theatre, which will also open later this year, will be home to a variety of special events and famous headline acts. The iconic Marina Bay Sands museum, expected to open by December, will not only feature international exhibitions, but it will also serve - with its unique lotus-inspired design - as a symbolic welcome to guests from around the globe.
The Singapore government originally chose Las Vegas Sands Corp. (NYSE:LVS) on May 26, 2006 to build one of only two approved integrated resorts in the Southeast Asian city-state. Marina Bay Sands will open progressively over the course of the year, with today's first phase including 963 hotel rooms, parts of the shopping mall and convention center, some restaurants and bars, the Event Plaza along Marina Bay, and the casino. On June 23, during the official grand opening celebration, the remainder of the property's 2,560 guest rooms, more shops from the world's leading retailers, additional dining options, and exciting nightlife offerings, will open. The Sands SkyPark, which sits 60 stories off the ground and is perched atop the property's three hotel towers, will also debut on June 23.
"Singapore's reputation as a world-class international tourist destination will be further enhanced with the opening of Marina Bay Sands and our company's reputation for building economy-changing tourism developments will be cemented around the world. For both of those reasons, I am happy to be in Singapore today to open the first phase of the property and look forward to the grand opening celebration," said Mr. Adelson.
"We are proud to have a fine team of people with the professional skills needed to build Marina Bay Sands, open it, and operate it. With that team, we are confident we will deliver the promise of a facility Singaporeans expected when they honored us with this opportunity," said Michael Leven, president and chief operating officer of Las Vegas Sands.
Mr. Adelson said its unique urban location provides Marina Bay Sands an opportunity to become one of the world's most successful hotel-resort properties. "The peak period of operations for most urban hotels is midweek, as they tend to cater to business travelers. The peak period for resort hotels is obviously the weekend when people have free time. For us, with our meeting and convention business and a multitude of leisure amenities, the entire week is our peak period," he said.
The company's industry-leading experience in the MICE (meeting, incentive, convention and exhibition) business was a key reason Singapore selected Las Vegas Sands. To date,
Marina Bay Sands has more than 160 events booked in its Sands Expo and Convention Center. Those events, beginning in May 2010, are expected to draw more than 250,000 total attendees. Marina Bay Sands President and CEO Thomas Arasi said those numbers will increase quickly and dramatically as meeting planners and convention organizers now have the opportunity to see the property themselves.
"This is a magnificent destination. From the specially-commissioned, multi-million dollar collection of art that greets you as you enter our hotel lobby to our attentive staff taking care of your every need after you check in, Marina Bay Sands is committed to making sure the interiors and service of our property matches the brilliance of its architecture," said Marina Bay Sands President and CEO Thomas Arasi.
In October, one of the property's two state-of-the-art theatres will welcome Disney's The Lion King. The second theatre, which will also open later this year, will be home to a variety of special events and famous headline acts. The iconic Marina Bay Sands museum, expected to open by December, will not only feature international exhibitions, but it will also serve - with its unique lotus-inspired design - as a symbolic welcome to guests from around the globe.
Friday, April 30, 2010
Canadian Luxury Resort Sales Booming
Canada record-breaking sales of luxury homes
High End Market Trends report, ReMax Canada said previous sales records for high-end homes broke records in nine of the 13 regions examined. The real estate ...
http://www.theglobeandmail.com/report-on-business/remax-reports-record-breaking-sales-of-luxury-homes/article1546686/
ReMax's definition of a luxury home varies by market, from $400,000 in St. John's to $2-million in Greater Vancouver. The amount is usually arrived at by looking at the top 1-to-5 per cent of sales in any given market
From the survey:
A luxury home was most expensive in Greater Vancouver at $2-million, followed by $1.5-million in Greater Toronto and Montreal Island.
Upper-end markets were most abundant in Atlantic Canada and smaller centres in Ontario, where luxury home prices started at $400,000 in St. John’s, $450,000 in Halifax-Dartmouth, $500,000 in London St. Thomas, and $750,000 in Ottawa and Hamilton-Burlington.
Winnipeg and Edmonton saw the luxury market around $500,000 and $850,000 respectively.
The most expensive house sold in Canada in the first quarter, according to the Multiple Listing Service managed by the Canadian Real Estate Association, was in Vancouver's west side, selling for $10-million. The house is on 3/4 of an acre, and is 11,600 square feet.
“While comparisons are being made to one of the worst first quarters on record – it’s important to note that the bounce back in many areas including Greater Vancouver, Victoria, Winnipeg, London-St.Thomas, Greater Toronto, Ottawa, Montreal (Island), Halifax-Dartmouth, and St. John’s - exceeds record levels reported in years past,” ReMax stated.
High End Market Trends report, ReMax Canada said previous sales records for high-end homes broke records in nine of the 13 regions examined. The real estate ...
http://www.theglobeandmail.com/report-on-business/remax-reports-record-breaking-sales-of-luxury-homes/article1546686/
ReMax's definition of a luxury home varies by market, from $400,000 in St. John's to $2-million in Greater Vancouver. The amount is usually arrived at by looking at the top 1-to-5 per cent of sales in any given market
From the survey:
A luxury home was most expensive in Greater Vancouver at $2-million, followed by $1.5-million in Greater Toronto and Montreal Island.
Upper-end markets were most abundant in Atlantic Canada and smaller centres in Ontario, where luxury home prices started at $400,000 in St. John’s, $450,000 in Halifax-Dartmouth, $500,000 in London St. Thomas, and $750,000 in Ottawa and Hamilton-Burlington.
Winnipeg and Edmonton saw the luxury market around $500,000 and $850,000 respectively.
The most expensive house sold in Canada in the first quarter, according to the Multiple Listing Service managed by the Canadian Real Estate Association, was in Vancouver's west side, selling for $10-million. The house is on 3/4 of an acre, and is 11,600 square feet.
“While comparisons are being made to one of the worst first quarters on record – it’s important to note that the bounce back in many areas including Greater Vancouver, Victoria, Winnipeg, London-St.Thomas, Greater Toronto, Ottawa, Montreal (Island), Halifax-Dartmouth, and St. John’s - exceeds record levels reported in years past,” ReMax stated.
Vail Real Estate Sales Booming
First quarter real estate sales continue upward path
Positive first quarter real estate figures in Eagle County
March saw the highest dollar volume month in over a year with $131 million in sales. This brings 2010 first quarter total to $318,726,934 which is more than twice the numbers of first quarter in 2009.
There were 102 transactions in March bringing the first quarter to 276; again nearly twice that of 2009 through the same period. Fourteen of these transactions were Westin Riverfront sales, totaling more than $6 million.
The high end market continues to move in March. There were 9 properties that each sold for over $5 million totaling $57,669,800.
Three contributing factors for the quick start to the year:
- Westin Riverfront: 64 sales totaling $37,229,400
- High end sales: 16 sales have sold for over $4 million, totaling $94,475,000
- Bank owned sales: 17 totaling $13,578,900
March Highlights:
- 53 Multi-family homes sold for an average sales price of $990,296
- Properties over $2 million accounted for 62% of the total dollar volume
Aspen Real Estate Market Booming
The Telluride real estate market has historically followed the Aspen
Summary for the month of March
- $103,247,244 total dollar volume, up 120% from March 2009
- 84 total transactions, an increase of 105% from March 2009
- Year to date, through March, dollar volume totals $207,733,603 – a decrease of 23% from the same time period last year
- Through March, transactions total 179, a decrease of 7.25% from the same time last year
- There were two notable residential sales for the month, both in Snowmass – one for $10 million and another for $9.04 million
- There were no sales in the month of March with a bank listed as the grantor, there have been 2 thus far in 2010
- The average single family sold price through the month of March is $3,712,121, a decrease of 24% from full year 2009
- The median single family sold price through the month of March is $4,100,000, an increase of 30% from full year 2009
- Please see page 4 of the PDF for additional information by specific area of the county
- Please see page 4 of the PDF for additional information by specific area of the county
- Interval dollar volume totaled $2.642 million, a decrease of 81% from March 2009
- Interval transactions totaled 14, a decrease of 39% from March 2009
- Hyatt Grand Aspen led with $918,000, followed by Timbers with $705,000, Ritz Carlton reported $470,000, St. Regis $350,000, and Sanctuary $199,000
- Hyatt led transactions with 6, Ritz Carlton reported 4, Timbers had 2, St. Regis and Sanctuary rounded out the total, each reporting 1
- Through March, interval dollars total $18,643,975, a decrease of 84% from the same time period last year
- Though March, interval transactions total 37, a decrease of 68% from the same time period last year
- Recall that in early 2009 there was a lot of activity with both The Residences at Little Nell and Dancing Bear. Through March of last year, the Nell had a total of 67 transactions and Dancing Bear had 25
- Recall that in early 2009 there was a lot of activity with both The Residences at Little Nell and Dancing Bear. Through March of last year, the Nell had a total of 67 transactions and Dancing Bear had 25
Thursday, April 8, 2010
Dual Carribbean Citizen via Property Purchase
Catherine Deshayes
7th Heaven Properties, a specialist in the sale of Caribbean properties, has seen sales enquiries up 60% in early part of 2010. Of these nearly 20% are a direct result of the Economic Citizen Partnership which allows purchasers to become island residents...
Under the Partnership agreement, people making a minimum investment of US$350,000 in a property or villa plot are entitled to apply for island Citizenship. Islands to realise the potential in allowing purchasers to become residents have quickly become hot spot destinations and include St.Kitts and Nevis, Dominican Republic, Belize and Dominica - with more to follow including St.Lucia, Grenada and St. Vincent and the Grenadines.
On the island of St Kitts, Oceans Edge (1 bedroom beachfront apartment) www.7thheavenproperties.com/property.asp?Id=541 is for sale for £252,736. Under the Economic Partnership Scheme the eventual purchaser will be in line to become a citizen of St Kitts for life with eligible family members also being given full residency status. Other benefits include:
· Dual citizenship opportunity
· Passports are issued to successful applicants and any eligible dependants
· Residency in St Kitts is not required
· Visa Free travel to a number of countries including European Schengen Countries
· Tax free status on foreign income, capital gains, gift, wealth and inheritance tax
· The right to work in St Kitts
As owner and director of 7th Heaven, Walter Zephrin explains: "In light of the downturn in the economy, increases in taxes across major economies and the significant drop in property value across the globe, the Caribbean remains a strong and vibrant investment option. The ECP provides property buyers and investors with an added incentive to purchase in the region. Having dual citizenship provides the buyer with ease of access to the destination, relocation alternatives and year round access to the sun and sea. Taxes in the Caribbean are generally lower and the region remains stable with diverse appeal."
To date the Caribbean has not suffered a development downturn in any way similar to many destinations.
The region's continuous drive to attract tourists to the islands all but guarantees property investors taking the buy to let option are sure of a sound investment. Walter Zephrin is establishing himself as a trusted and knowledgeable expert in the sales of Caribbean property as new client Rufus Gobat explains "I have known Walter personally for many years, and have always been impressed by his knowledge of the global property investment market and the Caribbean region in particular."
7th Heaven Properties, a specialist in the sale of Caribbean properties, has seen sales enquiries up 60% in early part of 2010. Of these nearly 20% are a direct result of the Economic Citizen Partnership which allows purchasers to become island residents...
Under the Partnership agreement, people making a minimum investment of US$350,000 in a property or villa plot are entitled to apply for island Citizenship. Islands to realise the potential in allowing purchasers to become residents have quickly become hot spot destinations and include St.Kitts and Nevis, Dominican Republic, Belize and Dominica - with more to follow including St.Lucia, Grenada and St. Vincent and the Grenadines.
On the island of St Kitts, Oceans Edge (1 bedroom beachfront apartment) www.7thheavenproperties.com/property.asp?Id=541 is for sale for £252,736. Under the Economic Partnership Scheme the eventual purchaser will be in line to become a citizen of St Kitts for life with eligible family members also being given full residency status. Other benefits include:
· Dual citizenship opportunity
· Passports are issued to successful applicants and any eligible dependants
· Residency in St Kitts is not required
· Visa Free travel to a number of countries including European Schengen Countries
· Tax free status on foreign income, capital gains, gift, wealth and inheritance tax
· The right to work in St Kitts
As owner and director of 7th Heaven, Walter Zephrin explains: "In light of the downturn in the economy, increases in taxes across major economies and the significant drop in property value across the globe, the Caribbean remains a strong and vibrant investment option. The ECP provides property buyers and investors with an added incentive to purchase in the region. Having dual citizenship provides the buyer with ease of access to the destination, relocation alternatives and year round access to the sun and sea. Taxes in the Caribbean are generally lower and the region remains stable with diverse appeal."
To date the Caribbean has not suffered a development downturn in any way similar to many destinations.
The region's continuous drive to attract tourists to the islands all but guarantees property investors taking the buy to let option are sure of a sound investment. Walter Zephrin is establishing himself as a trusted and knowledgeable expert in the sales of Caribbean property as new client Rufus Gobat explains "I have known Walter personally for many years, and have always been impressed by his knowledge of the global property investment market and the Caribbean region in particular."
Tuesday, April 6, 2010
Naples Real Estate Market Improving
Naples Real Estate Market Statistics – April
by adeltarealty
in Naples Market Update
The Naples real estate market for the month of March is continuing to show strengthening. The buyer’s market continues, however, it weakening especially since last year.
HOMES:
Homes available for sale, as of March 31 – totaled 3784. Of this total 659 were potential short sales, and 136 were foreclosures. This translates to 10.8 months of inventory (normal market is between 5 and 7 months) versus last year 21.1 months. This statistic most clearer reflects the higher level of sales activity of homes in the Naples area.
A total of 366 homes closed in March. Last March a total of 318 homes were closed.
Pending sales for the month of March was 700 homes versus last March’s figure of 575 homes.
The median sold price for a single family home in the Naples in March was $244000 in a year over year comparison March 2009 saw the median sold price at $177200.
An indicator of future closed sales in addition to the current month’s pending sales, is the total number of pending sales. The total number of pending sales includes not only the current month (700), but also an cumulation of those homes which have not yet closed from previous months. The total pending sales as of the end of March was 1370 homes. Of the 1370 homes, 735 were potential short sales and 185 were foreclosed homes (bank/lender owned).
CONDOS:
Condos available for sale as of March 31 – totaled 4036. Of this total 426 are potential short sale condos and 83 foreclosures. This translates to 14.9 months of inventory versus last year’s 29.9 months.
A total of 377 condos closed in March versus last March where 263 condos were sold.
Pending sales for the month of March was 627 versus last March’s figure of 465.
The median sold price for a condo in the Naples area was $165000 compared to last year’s median of $164000.
The indicator of future closed sales in addition to the current month’s pending sales is the total pending sales. In March a total of 1141 condos were pending sale. Of this number, 529 were potential short sales and 81 foreclosures.
The statistics used for this post were taken from the Sunshine MLS on April 1st using data obtained for the month of March. The March data is primarily at this time, the final statistics are generally available on the fifth business after the end of the previous month.
by adeltarealty
in Naples Market Update
The Naples real estate market for the month of March is continuing to show strengthening. The buyer’s market continues, however, it weakening especially since last year.
HOMES:
Homes available for sale, as of March 31 – totaled 3784. Of this total 659 were potential short sales, and 136 were foreclosures. This translates to 10.8 months of inventory (normal market is between 5 and 7 months) versus last year 21.1 months. This statistic most clearer reflects the higher level of sales activity of homes in the Naples area.
A total of 366 homes closed in March. Last March a total of 318 homes were closed.
Pending sales for the month of March was 700 homes versus last March’s figure of 575 homes.
The median sold price for a single family home in the Naples in March was $244000 in a year over year comparison March 2009 saw the median sold price at $177200.
An indicator of future closed sales in addition to the current month’s pending sales, is the total number of pending sales. The total number of pending sales includes not only the current month (700), but also an cumulation of those homes which have not yet closed from previous months. The total pending sales as of the end of March was 1370 homes. Of the 1370 homes, 735 were potential short sales and 185 were foreclosed homes (bank/lender owned).
CONDOS:
Condos available for sale as of March 31 – totaled 4036. Of this total 426 are potential short sale condos and 83 foreclosures. This translates to 14.9 months of inventory versus last year’s 29.9 months.
A total of 377 condos closed in March versus last March where 263 condos were sold.
Pending sales for the month of March was 627 versus last March’s figure of 465.
The median sold price for a condo in the Naples area was $165000 compared to last year’s median of $164000.
The indicator of future closed sales in addition to the current month’s pending sales is the total pending sales. In March a total of 1141 condos were pending sale. Of this number, 529 were potential short sales and 81 foreclosures.
The statistics used for this post were taken from the Sunshine MLS on April 1st using data obtained for the month of March. The March data is primarily at this time, the final statistics are generally available on the fifth business after the end of the previous month.
Thursday, April 1, 2010
London Luxury Market up 20%
London prices boom, 20% growth in 12 months (UK)
Thursday 1 April 2010
Knight Frank Prime Central London Residential Index - March 2010 result headlines:
* Prices for prime central London prices rose by 20% in the 12 months to the end of March 2010
* Prices are now rising at their fastest rate since March 2008
* Growth has been led by the lower to mid end of the central London market, with 24% growth for the sub-£2.5 mln. sector
* Prices are now only 9% lower than the March 2008 market peak
Liam Bailey, head of residential research, Knight Frank, commented: “The central London market has enjoyed boom-like conditions in recent months, at least in terms of prices, which rose by 20% in the 12 months to the end of March 2010. This growth has not been evenly spread, and it has been the low to mid end of the market, especially sub-£2.5 mln., which has seen the strongest growth (c 23%). The more expensive price brackets have lagged (c 17% for the £5mln. + sector), reflecting the fact that the recovery in pricing started later in this part of the market.
“The rate of price growth in March, at 0.7%, represents the slowest monthly rate of growth since last April, and suggests that price growth is beginning to slow on the back of higher supply and slightly weaker demand in the market. The balance between purchasers and vendors, has become more even in recent months. In the final quarter of 2009 our local offices recorded 10 new buyer registrations for every new sales instruction – well above the long run trend of 5.5. By March this ratio had dropped back to 7 as more vendors began to bring properties forward for sale on the back of rising prices, and also as buyers began to delay activity in the run up to the budget and the election.”
Global position
Bailey added, “The rapid growth in London’s pricing, reflects not only the stimulus given to the market from low interest rates and the weak pound – which have driven domestic and international demand – but also to very thin supply over the year, set against very healthy interest from buyers. However we can not overlook the importance of international buyers to the market – we reported in the recently released Knight Frank Wealth Report, that a record 49 nationalities bought residential property in central London in 2009. “Despite the result of our World Cities Survey, that London’s position as the leading global city had been ceded to New York, London prime residential market is still underpinned to a considerable degree by international demand – which appears to be rising not declining at the current time.”
Thursday 1 April 2010
Knight Frank Prime Central London Residential Index - March 2010 result headlines:
* Prices for prime central London prices rose by 20% in the 12 months to the end of March 2010
* Prices are now rising at their fastest rate since March 2008
* Growth has been led by the lower to mid end of the central London market, with 24% growth for the sub-£2.5 mln. sector
* Prices are now only 9% lower than the March 2008 market peak
Liam Bailey, head of residential research, Knight Frank, commented: “The central London market has enjoyed boom-like conditions in recent months, at least in terms of prices, which rose by 20% in the 12 months to the end of March 2010. This growth has not been evenly spread, and it has been the low to mid end of the market, especially sub-£2.5 mln., which has seen the strongest growth (c 23%). The more expensive price brackets have lagged (c 17% for the £5mln. + sector), reflecting the fact that the recovery in pricing started later in this part of the market.
“The rate of price growth in March, at 0.7%, represents the slowest monthly rate of growth since last April, and suggests that price growth is beginning to slow on the back of higher supply and slightly weaker demand in the market. The balance between purchasers and vendors, has become more even in recent months. In the final quarter of 2009 our local offices recorded 10 new buyer registrations for every new sales instruction – well above the long run trend of 5.5. By March this ratio had dropped back to 7 as more vendors began to bring properties forward for sale on the back of rising prices, and also as buyers began to delay activity in the run up to the budget and the election.”
Global position
Bailey added, “The rapid growth in London’s pricing, reflects not only the stimulus given to the market from low interest rates and the weak pound – which have driven domestic and international demand – but also to very thin supply over the year, set against very healthy interest from buyers. However we can not overlook the importance of international buyers to the market – we reported in the recently released Knight Frank Wealth Report, that a record 49 nationalities bought residential property in central London in 2009. “Despite the result of our World Cities Survey, that London’s position as the leading global city had been ceded to New York, London prime residential market is still underpinned to a considerable degree by international demand – which appears to be rising not declining at the current time.”
Wednesday, March 31, 2010
Vacation Home Sales up in 2010
Vacation-Home Sales Up in 2009 but Investment Sales Down
Washington, March 31, 2010
(March 31, 2010) – Vacation-home sales recovered in 2009 while investment sales fell sharply, according to the National Association of Realtors®.
NAR’s 2010 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2009, shows vacation-home sales rose 7.9 percent to 553,000 last year from 513,000 in 2008, while investment-home sales fell 15.9 percent to 940,000 in 2009 from 1.12 million in 2008. Primary residence sales rose 7.1 percent to 4.04 million in 2009 from 3.77 million in 2008.
NAR Chief Economist Lawrence Yun said, “The typical vacation-home buyer is making a lifestyle choice, with nine out of 10 saying they intend to use the property for vacations or as a family retreat,” he said. “Investment buyers primarily seek rental income, with six in 10 planning to rent to others, although one in five wants a family member, friend or relative to use the home.”
Only one in four vacation-home buyers plan to rent their properties to others, while one in five investment buyers plan to use their homes for vacations or as a family retreat. However, 26 percent of vacation-home buyers and 8 percent of investment buyers intend to use the property as a primary residence in the future.
The market share of homes purchased for investment was 17 percent in 2009, down from 21 percent in 2008, while the vacation-home share rose a percentage point to 10 percent. The total share of second homes declined from 30 percent of sales in 2008 to 27 percent last year. “First-time buyers were at record levels in 2009 with fewer sales of second homes,” Yun said.
The median transaction price of a vacation home was $169,000 in 2009, compared with $150,000 in 2008. “The higher vacation home price may reflect increased sales in higher priced markets, particularly in areas of Florida and California where prices became highly attractive for buyers over the past year,” Yun said.
Half of vacation homes purchased last year were in the South, 21 percent in the West, 17 percent in the Midwest and 12 percent in the Northeast. Seven out of 10 were detached single-family homes.
The median investment property sold for $105,000 last year, down 2.8 percent from $108,000 in 2008. There were more investment sales in the West in 2009, consistent with reports in California of a high share of all-cash purchases, notably in lower price ranges.
The distribution of investment sales was fairly close to the distribution of population: 35 percent in the South, 25 percent in the West, 24 percent in the Midwest and 16 percent in the Northeast. There was a higher share of condos in investment sales: 27 percent of investment homes were condos vs. 21 percent of vacation homes.
Similar to 2008, cash factored strongly in the second-home market: three out of 10 vacation-home buyers in 2009 paid cash for their properties, while half of investment buyers paid cash. Fairly similar ratios for each group indicated portfolio diversification or good investment opportunities were factors in the purchase decision.
The typical vacation-home buyer in 2009 was 46 years old, had a median household income of $87,500, and purchased a property that was a median distance of 348 miles from their primary residence; 34 percent were within 100 miles and 40 percent were more than 500 miles.
Investment-home buyers last year had a median age of 45, earned $87,200, and bought a home that was relatively close to their primary residence – a median distance of 24 miles. Roughly one in four investment buyers purchased more than one property in 2009.
Three out of four second-home buyers were married couples.
Demographically, the long-term demand for second homes looks favorable because large numbers of people are in the prime years for buying a second home. “Historically, people become interested in buying a second home in their mid 40s,” Yun said. “The large number of people who are now in their 30s and 40s will dominate the second-home market in the coming decade with a strong underlying demand, although sales in a given year will vary depending on the economy. Mortgage lending for second homes was extraordinarily tight in 2009 but it is likely to ease a bit in 2010.”
Currently, 40.1 million people in the U.S. are ages 50-59 – a group that dominated sales in the first part of the past decade and established records for second-home sales. An additional 44.4 million people are now in the primary buying demographic of 40-49 years old, and another 40.6 million are 30-39.
Buyers were more likely to purchase investment homes within a metropolitan area, while vacation homes were generally located in a rural area, small town or resort.
Vacation-home buyers plan to keep their property for a median of 16 years while investment buyers plan to hold their property for a median of 12 years.
NAR’s analysis of U.S. Census Bureau data shows there are 7.9 million vacation homes and 41.1 million investment units in the U.S., compared with 75.0 million owner-occupied homes.
NAR’s 2010 Investment and Vacation Home Buyers Survey, conducted in March 2009, includes answers from 1,930 usable responses. The survey controlled for age and income, based on information from the larger 2009 NAR Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents.
The 2010 Investment and Vacation Home Buyers Survey can be ordered by calling 800-874-6500, or online at www.realtor.org/newresearch. The report is free for NAR members, but the cost is $125 for non-members.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.
Washington, March 31, 2010
(March 31, 2010) – Vacation-home sales recovered in 2009 while investment sales fell sharply, according to the National Association of Realtors®.
NAR’s 2010 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2009, shows vacation-home sales rose 7.9 percent to 553,000 last year from 513,000 in 2008, while investment-home sales fell 15.9 percent to 940,000 in 2009 from 1.12 million in 2008. Primary residence sales rose 7.1 percent to 4.04 million in 2009 from 3.77 million in 2008.
NAR Chief Economist Lawrence Yun said, “The typical vacation-home buyer is making a lifestyle choice, with nine out of 10 saying they intend to use the property for vacations or as a family retreat,” he said. “Investment buyers primarily seek rental income, with six in 10 planning to rent to others, although one in five wants a family member, friend or relative to use the home.”
Only one in four vacation-home buyers plan to rent their properties to others, while one in five investment buyers plan to use their homes for vacations or as a family retreat. However, 26 percent of vacation-home buyers and 8 percent of investment buyers intend to use the property as a primary residence in the future.
The market share of homes purchased for investment was 17 percent in 2009, down from 21 percent in 2008, while the vacation-home share rose a percentage point to 10 percent. The total share of second homes declined from 30 percent of sales in 2008 to 27 percent last year. “First-time buyers were at record levels in 2009 with fewer sales of second homes,” Yun said.
The median transaction price of a vacation home was $169,000 in 2009, compared with $150,000 in 2008. “The higher vacation home price may reflect increased sales in higher priced markets, particularly in areas of Florida and California where prices became highly attractive for buyers over the past year,” Yun said.
Half of vacation homes purchased last year were in the South, 21 percent in the West, 17 percent in the Midwest and 12 percent in the Northeast. Seven out of 10 were detached single-family homes.
The median investment property sold for $105,000 last year, down 2.8 percent from $108,000 in 2008. There were more investment sales in the West in 2009, consistent with reports in California of a high share of all-cash purchases, notably in lower price ranges.
The distribution of investment sales was fairly close to the distribution of population: 35 percent in the South, 25 percent in the West, 24 percent in the Midwest and 16 percent in the Northeast. There was a higher share of condos in investment sales: 27 percent of investment homes were condos vs. 21 percent of vacation homes.
Similar to 2008, cash factored strongly in the second-home market: three out of 10 vacation-home buyers in 2009 paid cash for their properties, while half of investment buyers paid cash. Fairly similar ratios for each group indicated portfolio diversification or good investment opportunities were factors in the purchase decision.
The typical vacation-home buyer in 2009 was 46 years old, had a median household income of $87,500, and purchased a property that was a median distance of 348 miles from their primary residence; 34 percent were within 100 miles and 40 percent were more than 500 miles.
Investment-home buyers last year had a median age of 45, earned $87,200, and bought a home that was relatively close to their primary residence – a median distance of 24 miles. Roughly one in four investment buyers purchased more than one property in 2009.
Three out of four second-home buyers were married couples.
Demographically, the long-term demand for second homes looks favorable because large numbers of people are in the prime years for buying a second home. “Historically, people become interested in buying a second home in their mid 40s,” Yun said. “The large number of people who are now in their 30s and 40s will dominate the second-home market in the coming decade with a strong underlying demand, although sales in a given year will vary depending on the economy. Mortgage lending for second homes was extraordinarily tight in 2009 but it is likely to ease a bit in 2010.”
Currently, 40.1 million people in the U.S. are ages 50-59 – a group that dominated sales in the first part of the past decade and established records for second-home sales. An additional 44.4 million people are now in the primary buying demographic of 40-49 years old, and another 40.6 million are 30-39.
Buyers were more likely to purchase investment homes within a metropolitan area, while vacation homes were generally located in a rural area, small town or resort.
Vacation-home buyers plan to keep their property for a median of 16 years while investment buyers plan to hold their property for a median of 12 years.
NAR’s analysis of U.S. Census Bureau data shows there are 7.9 million vacation homes and 41.1 million investment units in the U.S., compared with 75.0 million owner-occupied homes.
NAR’s 2010 Investment and Vacation Home Buyers Survey, conducted in March 2009, includes answers from 1,930 usable responses. The survey controlled for age and income, based on information from the larger 2009 NAR Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents.
The 2010 Investment and Vacation Home Buyers Survey can be ordered by calling 800-874-6500, or online at www.realtor.org/newresearch. The report is free for NAR members, but the cost is $125 for non-members.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.
Wednesday, March 24, 2010
Investors are buying resort houses again
--------------------------------------------------------------------------------
Investors Are Buying Houses Again
Posted: 23 Mar 2010 07:40 AM PDT
Good news for the second-home market. What’s happening in your area?
More home buyers are snapping up properties with cash, a trend driven in large part by investors returning to the market after four years of falling prices around the country.
The share of home sales involving all-cash transactions was 26% in January, up from 18% a year earlier, according to the National Association of Realtors. The figures come from a survey of members about their most recent transactions. Many home buyers also are paying cash, but investors are largely using cash so they can avoid paying interest charges on loans and get a larger return on their investment.
Other NAR data also show a pickup in investment activity.
Home purchases made by buyers identified as investors climbed to 17% in January, up from 15% in December and 12% in November.
“We bottomed out in 2008, and in late 2009, prices stabilized and investors have returned,” says Mark Fleming, chief economist at First American CoreLogic. “It’s a different type of investor going after foreclosed properties and expecting to hold on for longer time frames.”
Many investors say they’re financing their purchases with cash on hand, rather than borrowing.
Evan Spinrod of San Francisco bought three rental properties in November and February and now owns 21 in four states. The rent he collects gives him an 8.5% annual return on his investment. Some of his homes are worth about $165,000. “I’m still looking,” Spinrod says. “You can’t build these houses for the prices they’re selling them. I’ve always seen that the real wealth was in real estate. People have been sitting on cash, and there’s no interest from the bank (to pay).”
Leonard Baron, a real estate professor at San Diego State University, has bought three homes with cash in the
San Diego area in the past eight months, ranging in price from $100,000 to $130,000. He rents the properties.
Baron says now is an ideal time to make such purchases. “It’s because prices have dropped so much and rents really haven’t,” he says. “The deals were unbelievable.”
Some Realtors also say they’re seeing increased investor activity.
“Flippers, rehabbers, investors … are, in fact, buying,” says Lisa Johnson, with Coldwell Banker Residential Brokerage in Haverhill, Mass. “I’m getting builders who have stopped building and are instead buying up condos and single-family homes to fix them up and sell them. It’s a neat change I haven’t seen in four years.”
All-cash purchases also reflect a growing number of investors buying higher-end properties without credit, says NAR spokesman Walter Molony. That’s a sign that some investors see real estate prices as having nowhere to
go but up. All-cash offers give buyers a competitive edge on rival offers – even higher ones – that are dependent on financing. Cash deals can close faster and are less likely to fall through.
“You have to have cash to be able to close quickly and have negotiating power. Cash is king,” says Tanya Marchiol, president of Phoenix-based Team Investments, which buys about 70 properties a month with cash it raises from investors. “We do want to flip it or generate cash flow (through renting it out). Now is the time to buy for cash flow. We know the market is going to rebound.”
Some investors say the current real estate market is an ideal time to buy because homes are so low priced, they are bound to hold their value.
That’s the philosophy of Jim McClelland of Tinley Park, 111.
He is buying about 120 to 150 entrylevel homes in the Chicago area this year and owns a total of about 300 properties.
He says now is a good time to buy because properties going into foreclosure are no longer just one-bedroom, fixer-uppers but nicer, split-level brick homes with more bedrooms that will probably appreciate to a higher value.
That’s because so many prime-rate borrowers who bought more expensive homes have gone into foreclosure.
He puts about $60,000 into upgrading a property, then rents it out.
“Do I think this year will be a better time to invest than in 2009? Yes,” McClelland says. “There have always been foreclosures. The difference now is you get a better home for the same kind of money. You’re sitting on better inventory. People get into real estate for financial independence. It’s not a quick fix. It appreciates. It doesn’t happen overnight.”
By Stephanie Armour USA TODAY
Investors Are Buying Houses Again
Posted: 23 Mar 2010 07:40 AM PDT
Good news for the second-home market. What’s happening in your area?
More home buyers are snapping up properties with cash, a trend driven in large part by investors returning to the market after four years of falling prices around the country.
The share of home sales involving all-cash transactions was 26% in January, up from 18% a year earlier, according to the National Association of Realtors. The figures come from a survey of members about their most recent transactions. Many home buyers also are paying cash, but investors are largely using cash so they can avoid paying interest charges on loans and get a larger return on their investment.
Other NAR data also show a pickup in investment activity.
Home purchases made by buyers identified as investors climbed to 17% in January, up from 15% in December and 12% in November.
“We bottomed out in 2008, and in late 2009, prices stabilized and investors have returned,” says Mark Fleming, chief economist at First American CoreLogic. “It’s a different type of investor going after foreclosed properties and expecting to hold on for longer time frames.”
Many investors say they’re financing their purchases with cash on hand, rather than borrowing.
Evan Spinrod of San Francisco bought three rental properties in November and February and now owns 21 in four states. The rent he collects gives him an 8.5% annual return on his investment. Some of his homes are worth about $165,000. “I’m still looking,” Spinrod says. “You can’t build these houses for the prices they’re selling them. I’ve always seen that the real wealth was in real estate. People have been sitting on cash, and there’s no interest from the bank (to pay).”
Leonard Baron, a real estate professor at San Diego State University, has bought three homes with cash in the
San Diego area in the past eight months, ranging in price from $100,000 to $130,000. He rents the properties.
Baron says now is an ideal time to make such purchases. “It’s because prices have dropped so much and rents really haven’t,” he says. “The deals were unbelievable.”
Some Realtors also say they’re seeing increased investor activity.
“Flippers, rehabbers, investors … are, in fact, buying,” says Lisa Johnson, with Coldwell Banker Residential Brokerage in Haverhill, Mass. “I’m getting builders who have stopped building and are instead buying up condos and single-family homes to fix them up and sell them. It’s a neat change I haven’t seen in four years.”
All-cash purchases also reflect a growing number of investors buying higher-end properties without credit, says NAR spokesman Walter Molony. That’s a sign that some investors see real estate prices as having nowhere to
go but up. All-cash offers give buyers a competitive edge on rival offers – even higher ones – that are dependent on financing. Cash deals can close faster and are less likely to fall through.
“You have to have cash to be able to close quickly and have negotiating power. Cash is king,” says Tanya Marchiol, president of Phoenix-based Team Investments, which buys about 70 properties a month with cash it raises from investors. “We do want to flip it or generate cash flow (through renting it out). Now is the time to buy for cash flow. We know the market is going to rebound.”
Some investors say the current real estate market is an ideal time to buy because homes are so low priced, they are bound to hold their value.
That’s the philosophy of Jim McClelland of Tinley Park, 111.
He is buying about 120 to 150 entrylevel homes in the Chicago area this year and owns a total of about 300 properties.
He says now is a good time to buy because properties going into foreclosure are no longer just one-bedroom, fixer-uppers but nicer, split-level brick homes with more bedrooms that will probably appreciate to a higher value.
That’s because so many prime-rate borrowers who bought more expensive homes have gone into foreclosure.
He puts about $60,000 into upgrading a property, then rents it out.
“Do I think this year will be a better time to invest than in 2009? Yes,” McClelland says. “There have always been foreclosures. The difference now is you get a better home for the same kind of money. You’re sitting on better inventory. People get into real estate for financial independence. It’s not a quick fix. It appreciates. It doesn’t happen overnight.”
By Stephanie Armour USA TODAY
Beach Front Luxury Properties Hit Hardest in Downturn
ublished: 24th March 2010
Beach-front property hit hardest by global downturn
Beach-front property hit hardest by global downturn
Prices of coastal second homes were hit hardest by the global downturn in 2009, according to new data from Knight Frank.
In their annual Wealth Report published yesterday, Knight Frank reveal an uneven picture of house price performance both by geographical market and property type.
Overall, high-end residential house prices fell 5.5% in 2009 but prices in city centres rose by 0.4% while coastal second homes and ski property prices fell 13.9% and 12% respectively.
The divurgance is explained partly by the strong performance of a small number of city centre markets in the second half of 2009, most notably Shanghai (up 52%), Beijing (up up 47%) and Hong Kong (up 40.5%).
Super-rich buy up “cheap” property in capital cities
In the uncertain economic environment and with a supply of cheap credit, the super-rich have been flocking to buy super-prime property in capital cities. The trend was no doubt enhanced by the sharp drop in prices in 2008 which led to a perception that property was cheap by historical standards.
Indeed many of 2008’s worst performers, were the top performers of 2009. London moved from 53 to 9 in the rankings and Hong Kong moved from 55 to 3 for example.
Coastal properties could buck the trend in 2010 and 2011
The evidence suggests that there is merit in investing in good quality property in locations that have fallen the most in value. After all, markets tend to over-correct on the way up and under-shoot on the way down. In markets with strong demand and limited supply, price reversals can happen quite quickly as price falls result in construction projects being put on hold which puts upward pressure on prices.
Although holiday home markets tend be more fickle than city centres, don’t be surprised if some of holiday home destinations at the bottom of the list appear towards the top in next years figures. Now could be the time for your clients to invest.
Beach-front property hit hardest by global downturn
Beach-front property hit hardest by global downturn
Prices of coastal second homes were hit hardest by the global downturn in 2009, according to new data from Knight Frank.
In their annual Wealth Report published yesterday, Knight Frank reveal an uneven picture of house price performance both by geographical market and property type.
Overall, high-end residential house prices fell 5.5% in 2009 but prices in city centres rose by 0.4% while coastal second homes and ski property prices fell 13.9% and 12% respectively.
The divurgance is explained partly by the strong performance of a small number of city centre markets in the second half of 2009, most notably Shanghai (up 52%), Beijing (up up 47%) and Hong Kong (up 40.5%).
Super-rich buy up “cheap” property in capital cities
In the uncertain economic environment and with a supply of cheap credit, the super-rich have been flocking to buy super-prime property in capital cities. The trend was no doubt enhanced by the sharp drop in prices in 2008 which led to a perception that property was cheap by historical standards.
Indeed many of 2008’s worst performers, were the top performers of 2009. London moved from 53 to 9 in the rankings and Hong Kong moved from 55 to 3 for example.
Coastal properties could buck the trend in 2010 and 2011
The evidence suggests that there is merit in investing in good quality property in locations that have fallen the most in value. After all, markets tend to over-correct on the way up and under-shoot on the way down. In markets with strong demand and limited supply, price reversals can happen quite quickly as price falls result in construction projects being put on hold which puts upward pressure on prices.
Although holiday home markets tend be more fickle than city centres, don’t be surprised if some of holiday home destinations at the bottom of the list appear towards the top in next years figures. Now could be the time for your clients to invest.
Tuesday, March 23, 2010
Good News for the Second Home Market
--------------------------------------------------------------------------------
Investors Are Buying Houses Again
Posted: 23 Mar 2010 07:40 AM PDT
Good news for the second-home market. What’s happening in your area?
More home buyers are snapping up properties with cash, a trend driven in large part by investors returning to the market after four years of falling prices around the country.
The share of home sales involving all-cash transactions was 26% in January, up from 18% a year earlier, according to the National Association of Realtors. The figures come from a survey of members about their most recent transactions. Many home buyers also are paying cash, but investors are largely using cash so they can avoid paying interest charges on loans and get a larger return on their investment.
Other NAR data also show a pickup in investment activity.
Home purchases made by buyers identified as investors climbed to 17% in January, up from 15% in December and 12% in November.
“We bottomed out in 2008, and in late 2009, prices stabilized and investors have returned,” says Mark Fleming, chief economist at First American CoreLogic. “It’s a different type of investor going after foreclosed properties and expecting to hold on for longer time frames.”
Many investors say they’re financing their purchases with cash on hand, rather than borrowing.
Evan Spinrod of San Francisco bought three rental properties in November and February and now owns 21 in four states. The rent he collects gives him an 8.5% annual return on his investment. Some of his homes are worth about $165,000. “I’m still looking,” Spinrod says. “You can’t build these houses for the prices they’re selling them. I’ve always seen that the real wealth was in real estate. People have been sitting on cash, and there’s no interest from the bank (to pay).”
Leonard Baron, a real estate professor at San Diego State University, has bought three homes with cash in the
San Diego area in the past eight months, ranging in price from $100,000 to $130,000. He rents the properties.
Baron says now is an ideal time to make such purchases. “It’s because prices have dropped so much and rents really haven’t,” he says. “The deals were unbelievable.”
Some Realtors also say they’re seeing increased investor activity.
“Flippers, rehabbers, investors … are, in fact, buying,” says Lisa Johnson, with Coldwell Banker Residential Brokerage in Haverhill, Mass. “I’m getting builders who have stopped building and are instead buying up condos and single-family homes to fix them up and sell them. It’s a neat change I haven’t seen in four years.”
All-cash purchases also reflect a growing number of investors buying higher-end properties without credit, says NAR spokesman Walter Molony. That’s a sign that some investors see real estate prices as having nowhere to
go but up. All-cash offers give buyers a competitive edge on rival offers – even higher ones – that are dependent on financing. Cash deals can close faster and are less likely to fall through.
“You have to have cash to be able to close quickly and have negotiating power. Cash is king,” says Tanya Marchiol, president of Phoenix-based Team Investments, which buys about 70 properties a month with cash it raises from investors. “We do want to flip it or generate cash flow (through renting it out). Now is the time to buy for cash flow. We know the market is going to rebound.”
Some investors say the current real estate market is an ideal time to buy because homes are so low priced, they are bound to hold their value.
That’s the philosophy of Jim McClelland of Tinley Park, 111.
He is buying about 120 to 150 entrylevel homes in the Chicago area this year and owns a total of about 300 properties.
He says now is a good time to buy because properties going into foreclosure are no longer just one-bedroom, fixer-uppers but nicer, split-level brick homes with more bedrooms that will probably appreciate to a higher value.
That’s because so many prime-rate borrowers who bought more expensive homes have gone into foreclosure.
He puts about $60,000 into upgrading a property, then rents it out.
“Do I think this year will be a better time to invest than in 2009? Yes,” McClelland says. “There have always been foreclosures. The difference now is you get a better home for the same kind of money. You’re sitting on better inventory. People get into real estate for financial independence. It’s not a quick fix. It appreciates. It doesn’t happen overnight.”
By Stephanie Armour USA TODAY
Investors Are Buying Houses Again
Posted: 23 Mar 2010 07:40 AM PDT
Good news for the second-home market. What’s happening in your area?
More home buyers are snapping up properties with cash, a trend driven in large part by investors returning to the market after four years of falling prices around the country.
The share of home sales involving all-cash transactions was 26% in January, up from 18% a year earlier, according to the National Association of Realtors. The figures come from a survey of members about their most recent transactions. Many home buyers also are paying cash, but investors are largely using cash so they can avoid paying interest charges on loans and get a larger return on their investment.
Other NAR data also show a pickup in investment activity.
Home purchases made by buyers identified as investors climbed to 17% in January, up from 15% in December and 12% in November.
“We bottomed out in 2008, and in late 2009, prices stabilized and investors have returned,” says Mark Fleming, chief economist at First American CoreLogic. “It’s a different type of investor going after foreclosed properties and expecting to hold on for longer time frames.”
Many investors say they’re financing their purchases with cash on hand, rather than borrowing.
Evan Spinrod of San Francisco bought three rental properties in November and February and now owns 21 in four states. The rent he collects gives him an 8.5% annual return on his investment. Some of his homes are worth about $165,000. “I’m still looking,” Spinrod says. “You can’t build these houses for the prices they’re selling them. I’ve always seen that the real wealth was in real estate. People have been sitting on cash, and there’s no interest from the bank (to pay).”
Leonard Baron, a real estate professor at San Diego State University, has bought three homes with cash in the
San Diego area in the past eight months, ranging in price from $100,000 to $130,000. He rents the properties.
Baron says now is an ideal time to make such purchases. “It’s because prices have dropped so much and rents really haven’t,” he says. “The deals were unbelievable.”
Some Realtors also say they’re seeing increased investor activity.
“Flippers, rehabbers, investors … are, in fact, buying,” says Lisa Johnson, with Coldwell Banker Residential Brokerage in Haverhill, Mass. “I’m getting builders who have stopped building and are instead buying up condos and single-family homes to fix them up and sell them. It’s a neat change I haven’t seen in four years.”
All-cash purchases also reflect a growing number of investors buying higher-end properties without credit, says NAR spokesman Walter Molony. That’s a sign that some investors see real estate prices as having nowhere to
go but up. All-cash offers give buyers a competitive edge on rival offers – even higher ones – that are dependent on financing. Cash deals can close faster and are less likely to fall through.
“You have to have cash to be able to close quickly and have negotiating power. Cash is king,” says Tanya Marchiol, president of Phoenix-based Team Investments, which buys about 70 properties a month with cash it raises from investors. “We do want to flip it or generate cash flow (through renting it out). Now is the time to buy for cash flow. We know the market is going to rebound.”
Some investors say the current real estate market is an ideal time to buy because homes are so low priced, they are bound to hold their value.
That’s the philosophy of Jim McClelland of Tinley Park, 111.
He is buying about 120 to 150 entrylevel homes in the Chicago area this year and owns a total of about 300 properties.
He says now is a good time to buy because properties going into foreclosure are no longer just one-bedroom, fixer-uppers but nicer, split-level brick homes with more bedrooms that will probably appreciate to a higher value.
That’s because so many prime-rate borrowers who bought more expensive homes have gone into foreclosure.
He puts about $60,000 into upgrading a property, then rents it out.
“Do I think this year will be a better time to invest than in 2009? Yes,” McClelland says. “There have always been foreclosures. The difference now is you get a better home for the same kind of money. You’re sitting on better inventory. People get into real estate for financial independence. It’s not a quick fix. It appreciates. It doesn’t happen overnight.”
By Stephanie Armour USA TODAY
Friday, March 12, 2010
China Housing Market Booming
China's housing prices hit new high in February
China's property market grew at the fastest pace in 20 months in February, with housing prices rising at a double digit rate, despite the government's cooling-down moves, according to data released Wednesday by the National Bureau of Statistics (NBS).
Housing prices in China's 70 large and medium-sized cities increased 10.7 percent in February from a year earlier, and were up 0.9 percent compared to the previous month, said the NBS.
Prices of new homes in February rose 13 percent year on year, up 1.3 percent from January, and were mainly pushed up by soaring home prices in Hainan Province as the state government decided to build the island into an international tourist resort in December.
Haikou, capital city of Hainan, ranked first among other major cities in new home price growth, which soared 58.4 percent year on year in February. Sanya, the second largest city in Hainan, saw its new home prices up 56.1 percent.
Prices of second-hand homes climbed 8.5 percent in February from the same time last year, up 0.5 percent from the previous month, according to the NBS.
Sanya topped other cities in second-hand home prices, with a rise of 42.2 percent in February year on year, and was followed by Haikou, with a 41.7-percent-growth, according to the NBS.
The figures were announced during the annual session of the National People's Congress (NPC), the top legislature, when Chinese Premier Wen Jiabao reiterated determination to curb the excessive growth of home prices in major cities and satisfy people's basic need for housing.
China's central and local governments rolled out a series of measures to dampen the overheated property market at the end of last year, including reimposing a sales tax on homes sold within five years of their purchase and raising the down payment requirement for families buying a second house or more with bank loans.
In another move to cool the property market, the People's Bank of China, the central bank, raised the deposit reserve requirement ratio in January, and in February for the second time.
China's property market grew at the fastest pace in 20 months in February, with housing prices rising at a double digit rate, despite the government's cooling-down moves, according to data released Wednesday by the National Bureau of Statistics (NBS).
Housing prices in China's 70 large and medium-sized cities increased 10.7 percent in February from a year earlier, and were up 0.9 percent compared to the previous month, said the NBS.
Prices of new homes in February rose 13 percent year on year, up 1.3 percent from January, and were mainly pushed up by soaring home prices in Hainan Province as the state government decided to build the island into an international tourist resort in December.
Haikou, capital city of Hainan, ranked first among other major cities in new home price growth, which soared 58.4 percent year on year in February. Sanya, the second largest city in Hainan, saw its new home prices up 56.1 percent.
Prices of second-hand homes climbed 8.5 percent in February from the same time last year, up 0.5 percent from the previous month, according to the NBS.
Sanya topped other cities in second-hand home prices, with a rise of 42.2 percent in February year on year, and was followed by Haikou, with a 41.7-percent-growth, according to the NBS.
The figures were announced during the annual session of the National People's Congress (NPC), the top legislature, when Chinese Premier Wen Jiabao reiterated determination to curb the excessive growth of home prices in major cities and satisfy people's basic need for housing.
China's central and local governments rolled out a series of measures to dampen the overheated property market at the end of last year, including reimposing a sales tax on homes sold within five years of their purchase and raising the down payment requirement for families buying a second house or more with bank loans.
In another move to cool the property market, the People's Bank of China, the central bank, raised the deposit reserve requirement ratio in January, and in February for the second time.
The Wealthy are Coming Back
--------------------------------------------------------------------------------
Wealth rebuilding bodes well for luxury market
Posted: 11 Mar 2010 07:04 AM PST
U.S. Millionaires' Ranks jumped 16 Percent in 2009, Study Says
"The millionaires’'club in the U.S. grew by 16 percent in 2009, following a 27 percent decline in 2008," according to a new Spectrem report. Affluent households -- those with net assets of $500,000 or more -- increased 12 percent to 12.7 million. At the same time, the number of households with a net worth of over $5 million rose 17 percent to 980,000. Finally, the magazine reports, "The average age of a so-called affluent investor is 58, compared with 62 for a millionaire and 67 for an investor with more than $5 million." Value of a household’s primary residence is not included in the calculation.
Wealth rebuilding bodes well for luxury market
Posted: 11 Mar 2010 07:04 AM PST
U.S. Millionaires' Ranks jumped 16 Percent in 2009, Study Says
"The millionaires’'club in the U.S. grew by 16 percent in 2009, following a 27 percent decline in 2008," according to a new Spectrem report. Affluent households -- those with net assets of $500,000 or more -- increased 12 percent to 12.7 million. At the same time, the number of households with a net worth of over $5 million rose 17 percent to 980,000. Finally, the magazine reports, "The average age of a so-called affluent investor is 58, compared with 62 for a millionaire and 67 for an investor with more than $5 million." Value of a household’s primary residence is not included in the calculation.
Thursday, March 11, 2010
Resort Sells Out in Six Weeks
Resort sells out in six weeks
Resort sells out in six weeks
Alpine Homes International, Savills’s ski property partner has sold its 14 unit ski resort in Austria within six weeks of launch.
The speed of sale is reminiscent of the good old days of 2006 and 2007 says Managing Director Jeremy Rollason:
“At the peak of the market we were selling this many properties every month. It’s unusual for this market. It’s nice to put all the ingredients together and have this level of success”.
He attributes the success to a time and energy invested in finding the right product.
“We spent a long time planning the project and ripped up the original designs. We eventually went for modern interiors with more traditional exteriors which appeals to the British market. The fact that is was ski-in, ski-out also made a big difference.”
The price of the development and strong rental potential also played a part in the sales success. “Prices started at €196,000 for 2 bed apartments. At 70% loan-to-value and with gross rental yields of around 6%, the properties wash their face in terms of the mortgage and running costs. It was a nine out of ten product”.
So what would make a ten out of ten product? “Cutting the price by 50%”, jokes Rollason. It seems nine out of ten is the best most of us can hope for in this market.
You can view the development here.
Resort sells out in six weeks
Alpine Homes International, Savills’s ski property partner has sold its 14 unit ski resort in Austria within six weeks of launch.
The speed of sale is reminiscent of the good old days of 2006 and 2007 says Managing Director Jeremy Rollason:
“At the peak of the market we were selling this many properties every month. It’s unusual for this market. It’s nice to put all the ingredients together and have this level of success”.
He attributes the success to a time and energy invested in finding the right product.
“We spent a long time planning the project and ripped up the original designs. We eventually went for modern interiors with more traditional exteriors which appeals to the British market. The fact that is was ski-in, ski-out also made a big difference.”
The price of the development and strong rental potential also played a part in the sales success. “Prices started at €196,000 for 2 bed apartments. At 70% loan-to-value and with gross rental yields of around 6%, the properties wash their face in terms of the mortgage and running costs. It was a nine out of ten product”.
So what would make a ten out of ten product? “Cutting the price by 50%”, jokes Rollason. It seems nine out of ten is the best most of us can hope for in this market.
You can view the development here.
Tuesday, March 9, 2010
China Overtakes US in Global Property Investments
China overtakes U.S. in attracting most property investment
China overtook the U.S. as the world’s biggest property investment market last year and will probably keep the lead in 2010 on economic growth and a lower reliance on debt, Cushman & Wakefield LLP said.
Real estate investment in China more than doubled to $156.2 billion last year, while the total for the U.S. slumped 64 percent to $38.3 billion, the New York-based broker said in a report today. Excluding residential investments, the U.S. came third after China and the U.K.
“China will continue to see vibrant investment activity, despite recent government measures to cool down the property markets,” Donald Han, Cushman & Wakefield’s managing director for Asia-Pacific capital markets, said in the report.
China’s economy expanded at an annual rate of 10.7 percent in the final quarter of last year, boosted by Premier Wen Jiabao’s $586 billion stimulus package. The U.S. property market is being hurt by high levels of unpaid debt and a reluctance among banks to lend as they clean up their balance sheets, Cushman & Wakefield said.
China is taking steps to rein in the real estate market as price increases accelerate. The government in January re-imposed a sales tax on homes sold within five years of their purchase and the People’s Bank of China raised the proportion of deposits banks must set aside as reserves to reduce lending. Property prices in December rose at the fastest pace in 18 months.
Eight of the world’s 20 largest property markets last year were located in the Asia Pacific region, with Hong Kong, Taiwan and New Zealand registering gains in investment, according to the report. Cushman & Wakefield is the world’s largest closely held commercial real estate adviser.
Japanese Revival
Japan will see a revival after investment fell 48 percent to $19 billion last year, it said. Some distressed properties are selling for less than their construction costs and average rental incomes tend to be higher than financing costs, making the market “compelling,” Han said.
U.S. property investment will rise 50 percent this year on falling prices and an increase in distress sales.
“Large pools of frustrated capital,” may be attracted to well-located properties with financially secure tenants, boosting prices, said Frank Liantonio, executive vice president of U.S. capital markets for Cushman & Wakefield. “Distressed sellers begin to deal with a mounting volume of properties,” he said.
In Europe, most investors are focusing on the largest, most active markets such as the U.K., France and Germany. Investment in the continent will probably rise 44 percent this year to $152 billion, the firm predicts.
U.K. prices were among the quickest to bottom out after the global financial crisis began, with values falling 44 percent in the two years to July 31. The slide in prices and the pound’s weakness helped revive investment and lift property prices.
(Source: Bloomberg, 2010-3-2)
China overtook the U.S. as the world’s biggest property investment market last year and will probably keep the lead in 2010 on economic growth and a lower reliance on debt, Cushman & Wakefield LLP said.
Real estate investment in China more than doubled to $156.2 billion last year, while the total for the U.S. slumped 64 percent to $38.3 billion, the New York-based broker said in a report today. Excluding residential investments, the U.S. came third after China and the U.K.
“China will continue to see vibrant investment activity, despite recent government measures to cool down the property markets,” Donald Han, Cushman & Wakefield’s managing director for Asia-Pacific capital markets, said in the report.
China’s economy expanded at an annual rate of 10.7 percent in the final quarter of last year, boosted by Premier Wen Jiabao’s $586 billion stimulus package. The U.S. property market is being hurt by high levels of unpaid debt and a reluctance among banks to lend as they clean up their balance sheets, Cushman & Wakefield said.
China is taking steps to rein in the real estate market as price increases accelerate. The government in January re-imposed a sales tax on homes sold within five years of their purchase and the People’s Bank of China raised the proportion of deposits banks must set aside as reserves to reduce lending. Property prices in December rose at the fastest pace in 18 months.
Eight of the world’s 20 largest property markets last year were located in the Asia Pacific region, with Hong Kong, Taiwan and New Zealand registering gains in investment, according to the report. Cushman & Wakefield is the world’s largest closely held commercial real estate adviser.
Japanese Revival
Japan will see a revival after investment fell 48 percent to $19 billion last year, it said. Some distressed properties are selling for less than their construction costs and average rental incomes tend to be higher than financing costs, making the market “compelling,” Han said.
U.S. property investment will rise 50 percent this year on falling prices and an increase in distress sales.
“Large pools of frustrated capital,” may be attracted to well-located properties with financially secure tenants, boosting prices, said Frank Liantonio, executive vice president of U.S. capital markets for Cushman & Wakefield. “Distressed sellers begin to deal with a mounting volume of properties,” he said.
In Europe, most investors are focusing on the largest, most active markets such as the U.K., France and Germany. Investment in the continent will probably rise 44 percent this year to $152 billion, the firm predicts.
U.K. prices were among the quickest to bottom out after the global financial crisis began, with values falling 44 percent in the two years to July 31. The slide in prices and the pound’s weakness helped revive investment and lift property prices.
(Source: Bloomberg, 2010-3-2)
Boomers and Second Homes
--------------------------------------------------------------------------------
Boomers Ready for Retirement Housing
Posted: 05 Mar 2010 02:20 PM PST
According to John Migliaccio, director of research for MetLife’s Mature Market organization, more than 78 million baby boomers, born between 1946 to 1964, will reach age 55 over the next 10 years.
He and other trend spotters believe this dominant group of home owners will lead the industry out of its slump.
Baby Boomers approaching retirement continue to be interested in buying into active-adult communities, but their moves are slowed due to a decline in the value of both their retirement savings and their current homes. To encourage seniors to find a way, 51 percent of builders of active-adult housing cut prices in the third quarter of 2009 – often as much as 25 percent or more – according to a survey by the National Association of Home Builders.
Practitioners point out that new isn’t always best. Buying an existing home in an active adult community can be a particularly good deal because these communities have extensive amenities, including golf courses and gyms. Some new construction projects on which builders have trimmed prices are not nearly as well equipped.
Source: Investor’s Business Daily, Joe Gose (02/25/2010)
Boomers Ready for Retirement Housing
Posted: 05 Mar 2010 02:20 PM PST
According to John Migliaccio, director of research for MetLife’s Mature Market organization, more than 78 million baby boomers, born between 1946 to 1964, will reach age 55 over the next 10 years.
He and other trend spotters believe this dominant group of home owners will lead the industry out of its slump.
Baby Boomers approaching retirement continue to be interested in buying into active-adult communities, but their moves are slowed due to a decline in the value of both their retirement savings and their current homes. To encourage seniors to find a way, 51 percent of builders of active-adult housing cut prices in the third quarter of 2009 – often as much as 25 percent or more – according to a survey by the National Association of Home Builders.
Practitioners point out that new isn’t always best. Buying an existing home in an active adult community can be a particularly good deal because these communities have extensive amenities, including golf courses and gyms. Some new construction projects on which builders have trimmed prices are not nearly as well equipped.
Source: Investor’s Business Daily, Joe Gose (02/25/2010)
Monday, March 8, 2010
Brits Staying Closer to Home for Second Home Purchases
Brits reject far-flung destinations in flight to safety
British overseas home buyers are reverting back to more traditional second home destinations, according to a survey of 1200 second home owners by Savills International.
During the overseas property boom, the proportion of Brits buying outside of Western Europe grew significantly as buyers became motivated by the potential for capital gains. However, since the market turned in September 2008, buyers have returned to the traditional favourites of Spain, France, Portugal and Italy.
“In 2010, the overseas second home market will be characterised by cash-rich, lifestyle buyers benefiting from lower prices in traditional, established holiday home hotspots.” Says Charles Weston-Baker, Head of Savills International.
The survey data also confirms that 2009 was one of the worst years for the industry. 70% of respondents invested in overseas property between 2003 and 2008 but just 2% had in 2009.
Rebecca Gill, research analyst at Savills International comments. “Whilst UK overseas home ownership has doubled since 2001 recent global recessionary trends have seen take-up levels dramatically slow. Factors such as fewer overseas holidays, reduced leisure spend capacity and financing availability, unfavourable exchange rates and declining house prices have impacted second home purchasing activity.”
20% of owners plan more purchases
The positive news is that a fifth of respondents said they are considering or planning additional holiday home purchases in the future. The top ten destinations being considered were France, Spain, Portugal, the US, Italy, Greece, Cyprus, Morocco, Brazil and Turkey.
However, further property price falls, better mortgage availability and a strengthening of sterling against the Euro are all necessary conditions before we see the market return to anywhere near the transaction volumes of 2007.
Promotion: £100 of free sales leads
FC Exchange are offering our readers £100 of free sales leads on our marketing platform Lead Galaxy and 20% commissions on any currency trades you refer. Click here if you would like to know more.
Subscribe to:
Posts (Atom)
