PALM BEACH COUNTY LUXURY HOME SALES UP SO FAR IN 2010

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.  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

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.

SHOULD YOU BUY INSTEAD OF RENTING?

• NOW IS THE BEST TIME EVER TO BUY A PROPERTY IN FLORIDA. Many homes in move-in condition and fixer-uppers are now very affordable and may be less expensive than renting, even leaving comparable dollars over for a maintenance reserve fund
• Interest rates are still low. For a few extra dollars a month on a 30-year mortgage a first-time buyer could own the house free and clear within 15-20 years, saving interest payments.
• A 1% rise in interest rates will add several hundred dollars per year to even a moderately-priced home so now is the time to take advantage of these low low rates.
• The trend upwards in home market value has already begun in some markets and will begin in others as the foreclosures and short sales are sold.
• First--time buyers incomes will increase over time, their house payment will remain stable, and will be appreciating in the future.
• Paying rent may be buying your landlord a house – why not buy your own house?
• How long do you anticipate living in a house you buy… if interest rates DO dip short term, by the time you sell the property the home market value may have appreciated.
• Rents can rise.

To find out how much house you can afford, get a mortgage pre-approval.  We can recommend lenders to you.

 

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

DESIGN-OMICS: MAKE EVERY DOLLAR COUNT

DESIGN-OMICS: MAKE EVERY DOLLAR COUNT

Thursday, August 19^th at 2 pm, hear and see the Robb & Stucky Design Team educate us about:

• Which design elements give your décor the most “bang for the buck”
• How to prioritize your choices to get as much impact as possible from each item on your list
• The dramatic effect of lighting
• Proper space planning
• The visual power of a “wow “ furniture accent.

Here is an opportunity to learn from “the pros.” This seminar will be held upstairs in the Boca Raton store in Mizner Park.  Reservations are requested as space is limited.  Please call 561-862-5597 to reserve.

FAU OPEN AIR 30,000-SEAT OWLS STADIUM

BACK ON TRACK

Florida Atlantic’s Board of Trustees have unanimously approved a plan for funding a new football stadium, the largest sports venue to be in Palm Beach County, and the State University’s Board of Governors is expected to give final approval in September with construction planned to start later that month. 

A loan of $44.6MM is expected from Regions Bank and application has been made for acceptance as a Build America Bond, for which the federal government pays 35% of the interest payments, as part of last year’s stimulus bill.  The loan will be paid off with stadium revenue, student athletic fees, sale of naming rights, fund raising and at least $1MM in funds each year from playing away games. 

While the lender cannot seize the property or go after the university to collect on the loan, it can take the operating revenue of FAU Finance Corp, a direct-support organization formed by the university, that is assuming the debt. After seven years, Regions Bank would have the right to call for full payment of the loans but FAU could reduce the outstanding debt on the stadium to $30MM in seven years and then perhaps refinance it as a bond. 

Total cost is $63.5MM, the balance after the loan coming from FAU and its fundraising foundation.   The construction project would employ 200 people and generate about 1000 jobs overall during the construction process.

Also included will be a team store, 1076 premium club seats, 4448 priority club seats, 16 air-conditioned boxes and 2 0 luxury suites for lease.  With palm trees at both southern ends zones the phrase used for scoring will be “Between the Palms.”

Read more: http://bocaratonhomesforsale.blogspot.com/#ixzz0uY7o76lM

NAR REPORTS EXISTING HOME SALES WERE UP 15% IN JUNE IN FLORIDA

It’s nice to hear good news. 

·        For 22 consecutive months sales activity has increased in the year to year comparison

·        Statewide sales in June were up 7.7% over May

·        Statewide existing-home median price of $143,400 was 2.1% higher than May’s $140,400

·        This is the 4^th month in a row that statewide existing-home median price has increased over previous month

·        16 metropolitan statistical areas showed higher sales for existing condos, many for 24 consecutive months.  

·        Condo price median was $181,300 in May nationally; Florida existing condo median sales price in June was $95,000.  In June 2009 it was $112,800, a 16% decrease.

None of us would disagree with National Association of Realtors (NAR) Economist Lawrence Yun, who said that as the employment rolls rise, so will home sales.

ANTIQUE RUGS – AN ACCESSORY YOU MAY WANT IN YOUR HOME

ANTIQUE RUGS – AN ACCESSORY YOU MAY WANT IN YOUR HOME

Unique antique rugs can add personality, character, versatility, style and interest to your home decor.  An antique is described as an item that is at least 80-100 years old, decorative and collectible.  The owner appreciates its age, beauty, rarity, warmth and. While rugs can be the most expensive decorative item in a home, antique carpets can be less expensive than brand new rugs.  You can purchase them at auction, often getting a wonderful buy. Rugs can also be displayed as wall hangings.

Traditional style carpets usually have intricate patterns and come in a wide array of colors from the jewel tones to light and airy, giving a real and elegant look. 

Tabriz rugs are Persian and sometimes have medallion designs and allover patterns that are precisely drawn and executed with care and of a high quality, therefore long -lasting. 

Kashan rugs include some of the best classical silk Persian rugs also with medallion and overall designs, in all colors.

Knorassan/Mashad rugs are available in similar formats but often have a softer, more decorative coloration.  Their weaving technique makes them durable.

Modern design tends to be simpler in taste and style, sometimes minimalist with subtle colors and an abstract look, e.g. arts and crafts or art deco.  Moroccan rugs can have simple tribal geometric or abstract patterns and add a sophisticated look to modern furniture and can have dynamic colors.  Architect Frank Lloyd Wright used Moroccan rugs in the homes he designed.

THE GOOD NEWS

The Certified Financial Planning Board of Standards conducted a survey in early July with a statistically representative sample of more than 1000 households and found:

·        66% believe the economy will hold steady or improve over the next 6 months

·        83% believe their own personal finances will get better or at least hold their own

·        most consumers are hoping for gradual improvements in home sales and real estate as well as other major sectors of the economy

Their report also discusses the use of financial planners and it has stayed relatively stable for the last two years.

BOCA RATON

HOUSING MARKET

SNAPSHOTS

 

HOME APPRAISALS

HOME APPRAISALS

A GOOD START when you are putting your property on the market would be to get an appraisal.  Then you know the market value, and can price it for sale accordingly and mention in the listing information that appraisal is available to see.  Here are some hints on how to prepare for an appraisal.

TIME COMING NEAR FOR NEXT SCHOOL SEMESTER

If you, or someone you know, wants details about schools in Palm Beach or Broward Counties, you can find all you need to know online.  You can input your address and receive the names of the local elementary, middle and high schools in your neighborhood. 

REPORT SAYS ALLOWING PETS IN CONDOS HAS POSITIVE RAMIFICATION ON PRICES

California enacted a law effective January 2001 that permits each owner in common interest developments, such as condos and mobile home parks, to keep at least one pet, subject to reasonable rules of the homeowners' association. Efforts are under way in Florida to adopt similar legislation, led by a group called Citizens for Pets in Condos.  On their site you can sign a petition to allow pets in condos.  Their Mission Statement: Citizens for Pets in Condos, Inc. educates the public on the health benefits of animal companionship and about responsible pet ownership in order to increase acceptance of companion animals in common interest ownership communities.  We believe that association rules should concentrate on irresponsible pet owners, allowing a win-win situation for responsible animal guardians and animals who would otherwise be needlessly euthanized. 

The idea is that pets generally provide emotional support for homeowners.  A recent report co-authored by Charles Carter, Ph.D., specialist in real estate analysis with many years of experience as a professor, real estate lawyer and appraiser and Tim Allen, professor and director of the Real Estate Center at the College of Charleston, which found allowing pets in condos has a positive effect on condominium prices in the South Florida condo market.

NEW SECURE COMMUNITIES PROGRAM ID’S CRIMINAL ALIENS IN FLORIDA TO REMOVE THEM FROM THE US

US Immigration/Customs (ICE) and Florida Dept. of Law Enforcement (FDLE) are using new fingerprinting method to identify legal and illegal criminal aliens and to remove them from the United States.  A “criminal alien” is defined as an alien convicted of a crime.  Fingerprints are used that are taken when these criminals entered prison and when they entered the US.  This enables local law enforcement partners to know as much as possible about the people in their custody by quickly and accurate identification.

The new SECURE COMMUNITIES program now checks fingerprints against both FBI criminal history records and a biometrics-based ID system maintained by the Department of Homeland Security.  The purpose of the program is to modernized identifying and removing the most dangerous criminal aliens from the US.  The Program has been activated statewide in Florida and is now being used in 392 jurisdictions in 23 states. It should be available nationwide by 2013. 

ICE is notified thru the fingerprinting process and places a priority on removing aliens convicted of the most serious Level 1 offenses first, for committing violent crimes such as major drug offenses, murder, rape and kidnapping.  The use of biometric technology has greatly improved the ID method.  Using this program, criminal aliens are not released back into our communities when they complete their sentences.

Since October 2008, 22,200 criminal aliens convicted of Level 1 crimes as described above have been removed from the United States, 1800 of them from Florida, and more than 22,200 criminal aliens convicted of Level 2 and 3 crimes have been removed, including burglary and serious property crimes which are the highest amount of crimes committed by aliens. 

Congress provided the U.S. Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE) with funding in FY 2008 to “improve and modernize efforts to identify aliens convicted of a crime, sentenced to imprisonment, and who may be deportable, and remove them from the United States once they are judged deportable.”

HOME BUYER TAX CREDIT AND FLOOD INSURANCE EXTENSION PASSED BY SENATE AND HOUSE and SIGNED BY OBAMA

HOME BUYER TAX CREDIT AND FLOOD INSURANCE EXTENSION PASSED BY SENATE AND HOUSE and SIGNED BY OBAMA

HR5623, extending mandatory closing date to qualify for the homebuyer tax credit has extended closing deadline to September 30, 2010 for contracts signed by April 30, 2010.  National Association of Realtors estimates more than 14,000 closings will benefit.

The National Flood Insurance Program has been extended to September 30, 2010, retroactive to May 31, 2010.

WHAT’S NEW IN THE CAT WORLD

WHAT’S NEW IN THE CAT WORLD

The U.S. Pet Ownership & Demographics Sourcebook (2007 Edition), a source for pet statistics, announced in 2007 there were nearly 82MM pet cats and 72 MM pet dogs in the US.  In 2006 the average veterinary expenditure per household for all pets was $366.  In 2006 nearly half of pet owners (49.7%) considered their pets to be family members.

A RECENT New York Times article gave examples for cat owners of a new trend to safely bring their cats outdoors, “CATIOS.”  There are photos and stories about folks who build outdoor fenced areas onto their patios and backyards to give their cats room to roam outdoors.  They range from minimal to huge areas, especially when there is more than one cat.  Sometimes owners share the space, eating out among their cats in this environment that is safe from predators.

Cat beds include the Over-the-Door Hanging Cat Bed with Portholes, cat hammocks, Kitt-In Box, and

Contemporary Cat Towers.

Here is a new contemporary design award winning litter box idea   

 or a more formal corner cat litter box .

Cat trees are very popular, including the Little Lotus Cat Tree - or consider the simple alternative above.   

 New and cat-friendly and comfortable hanging bed is the soft pillowed Trapeze Hanging Cat Bed. in an attractive assortment of colors, referred to by the New York Times as “the I-Pod of litter boxes”.

For those of you among the readership who want to invent or design a new product, the cat world is a good place to start as cat owners are a dedicated bunch of folks who are looking for ways to enhance the lives of their “fur-babies.”