PALM BEACH COUNTY LUXURY HOME SALES UP SO FAR IN 2010

 

Luxury market strengthens in Palm Beach County. Seven homes in Boca Raton sold for an excess of $5MM so far in 2010, 2 in Delray Beach (one 25,000 sq ft oceanfront house for $17MM), 2 in Manalapan, 9 in Palm Beach and 1 in Jupiter with a total of 24 in Palm Beach County.  A total of 29 homes sold for an excess of $5MM in 2009.  One condominium sold in 2009 over $5MM, in Luxuria, for $11,850,000.  This year one sold so far in the Excelsior for $5,995,000. We will report 2010 end-of-the-year figures in due time.

Gloomy news that July sales of existing homes dropped 25.5% year-over-year has overshadowed new statistics showing summer sales of million dollar plus homes significantly outperformed other price ranges.   “Luxury homebuyers have been buying this summer,” said Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing (ILHM).  “After waiting in the wings, many affluent buyers spent the summer shopping for value and snapping up trophy properties.”

Statistics would indicate that she’s right. According to The National Association of Realtors (NAR), for 2009 million-dollar and above home sales were just 1.2% of total sales or about 61,500 sales nationally.  In July 2010, million dollar plus market share was up to 1.9%.  While sales of homes in the $500,000 and above range rose dramatically in June, the million-dollar-plus market segment was the only price range in July showing positive growth compared to last year.  “The mix of what is selling has shifted in favor of homes priced at $750,000 and above,” added Moore-Moore.

NAR’s report that July’s median sales price increased 0.7% year-over-year may be more a function of increasing sales of expensive properties relative to other price ranges than an indicator of across-the-board home price appreciation.  According to the ILHM National Luxury Market Report -- which does a weekly analysis of luxury homes for sale in more than 30 major markets -- after a dramatic rise in upper-tier inventory, which started in January of this year, the numbers of luxury homes for sale has declined about 5% since the beginning of July.  Along with a decrease in inventory, there has been a decline in asking prices.  Forty three percent of luxury homes currently on the market have had at least one reduction in asking price over the last 90 days.  An additional 19% have been pulled off the market and subsequently relisted. 

“While I wouldn’t say the luxury market is in recovery,” said Moore-Moore, “the growing market share of luxury sales relative to total sales, a slight downward trend in inventory, and sellers who are more realistic about price are factors shifting the affluent into a buying mode.”

SEARCH FOR UNCLAIMED ITEMS

The State of Florida currently has unclaimed property accounts valued at more than $3BB from sources such as:

• Dormant accounts in financial institutions, insurance and utility companies, securities and holdings
• Tangible property including watches, jewelry, coins, currency, stamps, historical items and others from abandoned safe deposit boxes

Unclaimed money is deposited into the state school fund and used for public education. However there is no statute of limitations and have the right to claim their property at any time.  Try your search here: Unclaimed Property Search.  If you want to go through a catalog of items being auctioned today that is on the same site.

 

THE BRITISH HAVE DONE IT AGAIN WITH THE WORLD’S PRICIEST APARTMENT SALE

Sale price: about $220MM.  London skylines, private wine tasting facilities and top security features including bullet-proof windows and a panic room, SAS-trained bodyguards and floor to ceiling windows with fabulous views of central London were the major attractions to the 6-bedroom 2-floor penthouse in One Hyde Park, Knightsbridge, London.  Eye scanners are featured in private elevators to prevent unwanted intruders.  The building is heated using geothermal bore holds sunk 450’ to extract heat from the earth’s crust.  The apartment contains an air purifier to ward off poison gas attacks.  The new owners, anonymous, expect to move in by the end of the year.

Eighty apartments have been sold in this new unique complex, one of the world’s most expensive residential areas.  This upscale neighborhood has an average apartment cost of $30MM.  65% of all properties in the block have been sold with 30% of the buyers Europeans and 25% Middle eastern as the worlds financial elite flock to London, taking advantage of the weakness of the pound. 

There is also tunnel access to the Mandarin Oriental Hotel and their 24-hour room service with TV chef Heston Blumenthal opening a fabulous new restaurant and to spas and squash courts and the unit has its own car park.  

“Trophy properties” sales remain strong.  Some speculate that trophy buyers of today might be from Nigeria or the Middle East, with large oil profits facilitating these sales.

BP OIL SPILL ESTIMATED DAMAGE IN DOLLARS

BP OIL SPILL ESTIMATED DAMAGE IN DOLLARS

CoreLogic estimates that the BP DeepWater Horizon oil spill will cost homeowners in gulf coast communities $648MM over one year and over 5 years as much as $3BB.  If the spill reaches the Florida Keys and the Florida Atlantic coast, losses there could reach up to an additional $28BB in 5 years.  The annualized economic value of beach access at risk by oil coming ashore and beaches being closed were taken into account. Premiums were paid by buyers of homes in these coastal communities.  More than 600,000 properties were identified as being within 1000 meters of the coastline in 15 counties from the gulf coast of Alabama to the Atlantic coast of Florida.

FOR MIZNER BUFFS

 

Addison Mizner, Palm Beach society architect, created the “Palm Beach style” in the late 1910’s. It was very well received, and in 1918, he designed the Everglades Club on Worth Avenue. The demand for his work mushroomed, so to keep up with demand, he founded his own factory, Mizner Industries, which grew into one of the largest tile and ironwork Spanish design manufacturing companies in Palm Beach in the 1920’s.  They also made hand made pottery, stamped metal fixtures, cast stone, columns, windows and door surrounds, indoor and outdoor furniture and art glass.  Furnishings were often distressed to give them an antique look.   He imported antique furniture, decorative tiles and other items to add to his line.  His homes became known as the “Mediterranean Revival” style.   

By the 1950’s, styles had changed, and there was not much demand for his style of work.  Lately, the “Mizner Style” has come back into vogue. There is a current exhibit of his works at Town Hall, from Monday thru Friday from 10 am to 4 pm.  Group tours are welcome – call 561-395-6766, ext 100 for more information.

LUXURY HOMES MARKET UPDATE

The Institute for Luxury Home Marketing National Report

for the week of July 25, 2010 looked at 

39,064 luxury homes on the market.
The ILHM Luxury Composite Price this week is $1,082,759.

These homes have been on the market for an average of 123 days.

Luxury home prices across the ILHM National
sample have stayed relatively stable in recent weeks.

This week´s median price is $1,082,759
Asking price per square foot is $305
Average Days on the Market: 123
Percent of Properties with Price Decrease: 41%
Percent relisted (reset Days on Market): 21%
Percent Flip (Price Increased): 3%
New Listings: 1709
Absorbed this week: 1635
Median House Size (square feet): 3284
Median Lot Size: 0.50 - 1 acre
Median Age: 30

 

The Market Action Index measures available supply 

relative to the current level of demand. 

Index value above 30 indicates conditions favor the seller.
CURRENT MARKET ACTION INDEX IS 12

Marilyn Farber Jacobs is a Founding Member of
The Institute for Luxury Home Marketing