WSJ: Luxury Home Sales Bounce Back, true in Steamboat too
Challenges clearly remain but the Wall Street Journal is seeing some strong signs of recovery in the luxury home market. Among those challenges we often find opportunity. In Steamboat we have seen a strong uptick in the sale of properties over $1m with large numbers of sales in the $1-$5m range. According to Land Title YTD sales volumes are up 215% through the end of April compared to 2009 numbers. We are seeing people take this chance to pick up some of the best properties at good to great prices. Some want a place to bring thier family and friends together, others are location neutral and think why not live in Steamboat and many are planning for retirement down the road. Nearly all see a turn coming and want to buy at the bottom of this cycle. On the sell side prices have gotten much more attractive due to pressures on spec builders & their banks, the desire to rebalance portfolios and many see an even better deal on what they would like to buy so they don't mind selling for less then they hoped.
We have been busy for about the last year or so with some very careful buyers looking to take advantage of the values out there. In the last few months I have seen several multiple offer situations on luxury properties and have been outbid on 3 properties I had offers in for clients in the last week. I'm not saying it is time to throw caution to the wind or that time is running out by any means, it may be 6 months to a year before the tide shifts but we are seeing some good signs that are making some very smart people take a closer look. Discipline and careful study are important, the raw cost per foot does not necessarily mean something is a great value.
True value is a much more considered quality. The Steamboat Pilot ran a story about a home that sold for the low $100s per square foot and touted it as a great value. Unfortunately for the buyer that couldn't have been further from the truth as there were both obvious and hidden issues that will make it very expensive to refurbish and limit its final value to just above what they paid. We have been working hard to identify real values, understand them deeply and be there when opportunities to aquire them at attractive prices are at the best for our clients. It may seem counter intuitive to some but we also use this knowledge of what is driving the market segments and buyers looking in them to advise our sellers stay with the market as it shifts and reach an optimal result instead of drifting along. Our success comes from working hard for our clients best interests.
If you would like to talk to someone who works hard to understand the Steamboat Springs Real Estate market in each different different segment about your goals or just to talk about what is going on. Give me, Jon Wade a call at 970-819-6930
Some quotes from the WSJ article: After a near-disastrous 2009, the luxury market appears to be making a comeback, driven by growing buyer confidence, improved financing conditions and more-realistic seller pricing. Despite the housing downturn, attractively priced homes in some of the nation's most coveted neighborhoods are selling, sometimes fast and sometimes with multiple offers. Nationwide, sales of homes selling for $2 million to $5 million in the first quarter totaled 2,461, up 32% from a year before, says CoreLogic.
That sales are up from last year shouldn't come as a big surprise. The shock of the financial panic in the fall of 2008 left many potential buyers too nervous to bid, and those who were willing to wade in found it hard to get financing. But a study for The Wall Street Journal by MDA DataQuick, a real-estate data provider, found that in some areas of the country, sales of homes over $2 million in the first quarter were actually on par with the levels of 2005, the peak year for existing-home sales volume nationwide.
In San Francisco, 49 homes sold for $2 million or more in this year's first quarter, according to the study, compared to 47 in 2005. In Manhattan, there were 402 sales of $2 million or more in the latest quarter, compared with 311 in the first quarter of 2005, according to the appraisal firm Miller Samuel Inc. Other areas with strong rebounds included New York's Hamptons, Menlo Park, Calif., and Beverly Hills.
Even a couple of troubled housing markets experienced a strong uptick. In Las Vegas, there were 21 such sales in the first quarter, up from 15 in the first quarter of 2005, according to DataQuick. In Miami, 21 such sales of $2 million or more were recorded in the first quarter, up from 15 last year and close to the 23 that sold in that time five years earlier.