Coldwell Banker Previews International Luxury Market Report Finds High Demand for $10+ Million Homes in Four New Residential Communities

MADISON, N.J., Oct. 6, 2015 /PRNewswire/ --  Four exclusive residential communities have cracked the "Top 20" list of cities with the highest number of sales in the $10 million-plus category, according to the Luxury Market Report prepared by the Coldwell Banker Previews International^® marketing program.

Driven by strong demand from high-net-worth (HNW) individuals and families, Montecito, Calif.; Delray Beach, Fla.; Palm Beach, Fla.; and Vail, Colo. joined longtime luxury leaders like Beverly Hills, Calif.; Miami Beach, Fla.; and Aspen, Colo. Aside from the Colorado ski resorts of Aspen and Vail, the $10 million-plus sales are concentrated in cities on the nation's east and west coasts.

In the $1 million-plus category, Atlanta experienced a 70 percent gain in sales compared with 2014 ─ the largest jump in the 20 cities covered in the report. Million-dollar sales rose 23 percent in Los Angeles and 21 percent in Seattle, while Houston and Park City, Utah, were newcomers to the list.  However, $1 million-plus sales may be leveling off in two traditionally hot markets ─ Miami, where demand is largely driven by wealthy international buyers, and San Francisco, where the market is driven by the technology sector.

During the last 12 months through June 2015, the top 10 U.S. cities with the highest number of luxury home sales valued at $1 million+ were:

* The number of sales for these cities is up by at least 36 percent.  

Extending the range up to the $10 million+ category, Miami Beach and Aspen have steadily marched up toward longstanding luxury real estate epicenters of New York, Beverly Hills and Los Angeles.

HIGH-NET-WORTH CONSUMER SURVEY
Rising home values do not appear to be dampening the interest of high-net-worth (HNW) individuals in making residential real estate investments in 2015.  According to a companion survey of the wealthiest 1.5 percent of the U.S. population, conducted by the Coldwell Banker Previews International^® marketing program and Ipsos MediaCT, 54 percent of HNW individuals anticipate making an investment in real estate this year, up from 48 percent in 2014.

These findings offer insight behind the surging prices of high-end homes in many U.S. real estate markets over the last few years, including these key trends:

Home Ownership

• HNW individuals owned 2.1 homes on average
• Residential real estate comprised an average 38 percent of net worth
• 43 percent purchased residential real estate in the past five years
• 57 percent paid cash for their residential purchases

Investment Appeal

• 40 percent cited investment attractiveness as a reason to buy real estate
• 39 percent cited desire for a specific location
• 38 percent were seeking a safer investment than the stock market
• 31 percent wanted to take advantage of low interest rates 

Generational Differences

Who plans to purchase a new property in the coming year?

• 69 percent of HNW Millennials under the age of 35
• 50 percent of GenXers (ages 35 to 49)
• 17 percent of Baby Boomers (ages 50 and older)

Who believes they have a choice of location for a "life anywhere" lifestyle?

• 85 percent of Millennials
• 69 percent of GenXers
• 29 percent of Baby Boomers

How much did they pay for their last home?

• Millennials spent an average of $4.96 million
• GenXers spent $5.24 million
• Baby Boomers spent $1.55 million

Preferred Amenities

• 43 percent want a home in "move in" condition
• 41 percent want a fully automated and wired home environment
• 36 percent want a LEED-certified green home
• 36 percent want open floor plans
• 34 percent want home gyms
• 32 percent want home theatres
• 30 percent want safe rooms

The full list of the Top 20 Best Performing U.S. Cities in Luxury Real Estate by price points of $1 million+, $5 million+ and $10 million+, and the high-net-worth consumer survey results can be viewed here www.previewslmr.com.

Luxury Market Report Methodology
Manhattan area active and sold listing data has been gathered from the Real Estate Board of New York (REBNY) and select cooperating brokerage firms, which have agreed to share their listing inventory and comparable sales data with one another for marketing and property valuation purposes. Not all Manhattan area real estate brokerage firms make information about their property listings or closed sales available to any cooperative resource, including REBNY, or the compilation from which this information has been sourced. All other data has been gathered from the Multiple Listing Service (MLS) databases known or believed to be the primary real estate broker cooperative resources for each market referenced in the report. All closed sales activity reported is for the annual period July 1, 2014 through June 30, 2015. Closed sales reported to the MLS significantly later than this analysis period will not be included. All active status listing records were downloaded and processed to the same standards, and on various dates, during the months of July and August, 2015. Property-specific listing and sales records were standardized to USPS address city and ZIP Code, inaccurate list and sale prices were corrected when necessary, and all duplicate records were manually excluded. As a result, statistics available via the source data providers may not correlate to this analysis. While all results are believed to be highly accurate, MLS systems do not report all real estate activity in their primary marketplace, and there may have been property transfers not included in this analysis.

Copyright © 2015, Real Data Strategies, Inc. All rights reserved. Licensed for the exclusive use of Coldwell Banker Real Estate LLC.

High-Net-Worth Consumer Survey Methodology
Ipsos MediaCT conducted research among high-net-worth (HNW) individuals in the United States with a minimum household income of $200,000 per year and a minimum net worth of $5 million. HNW individuals reflect 1.8 million households, or roughly the top 1.5 percent of the U.S. population, according to the 2013 Survey of Consumer Finances. Respondents were recruited and screened to include only those age 21 or older. A nationwide survey of 500 high-net-worth individuals was conducted in Quarter 2 2015. The survey data have been weighted with respect to the demographic variables to better reflect the profile of consumers in wealthy households according to the 2013 Survey of Consumer Finances. These results are intended to provide important real estate investment insights that can influence decision-making and best practices implementation for real estate agents.

About Coldwell Banker Previews International^®
The Coldwell Banker Previews International program has been a world leader in the marketing of luxury homes since 1933. The Previews^® program was acquired by Coldwell Banker Real Estate LLC in 1980 and launched as Coldwell Banker Previews International^®, the brand's luxury homes program.  The exclusive group of certified Previews Property Specialists make up approximately 8.5 percent of the independent sales associates affiliated with the Coldwell Banker brand worldwide.  Coldwell Banker Previews International participated in more than 21,000 transaction sides of homes priced at $1 million or more in 2014. On average, Previews handles $106 million in luxury homes sales every day. Coldwell Banker, Previews and Coldwell Banker Previews International are registered marks licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

About Coldwell Banker Real Estate LLC
Since 1906, the Coldwell Banker® organization has been a premier provider of full-service residential and commercial real estate brokerage services.   Coldwell Banker Real Estate is the oldest national real estate brand and franchisor in the United States, and today has a global network of approximately 3,000 independently owned and operated franchised broker offices in 43 countries and territories with more than 88,000 affiliated sales professionals.  The Coldwell Banker brand is known for creating innovative consumer services as recently seen by being the first national real estate brand with an iPad app, the first to augment its website www.coldwellbanker.com for smart phones, the first to create a iPhone application with international listings and the first to fully harness the power of video in real estate listings, news and information through its Coldwell Banker On LocationSM YouTube channel.  The Coldwell Banker System is a leader in niche markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International® marketing program delivering exceptional experiences for all consumers served.

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SOURCE Coldwell Banker Previews International

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