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August 2013

July 2013

WSJ Video: Rise of the Young Luxury Home Buyer

 

For some time now, we've seen affluent foreign buyers snapping up luxury homes for their children being educated in the U.S.   This report suggests that in many cases affluent American families are "chipping in" on luxury home purchases for their children.  Not surprising given current economic and equity market conditions, the amount of money on the sidelines, and the current real esate market.  

Are you seeing this trend in your market?  What do you see as the drivers?


Information Resource on Wealthiest Chinese

HurunAccording to the National Association of Realtor’s 2013 Profile of International Home Buying Activity, 12% of International home buyers in the U.S. are Chinese.  In Canada, Chinese investors have been snapping up properties in Canada's largest cities, driving up prices and according to observers, often outbidding Canadians.

In the U.S., Chinese buyers pay more on average for properties – median price of homes bought by Chinese is $425,000.  Sixty-nine percent of Chinese purchasers pay all cash.

If you have tapped into this important market niche, or wish to work with very wealthy Chinese, here’s a useful resource.  The Hurun Research Institute publishes the Hurun Rich List, an annual ranking of the 1000 richest individuals in China.  The firm also publishes additional research on China’s high net worth individuals including demographic information and information on their consumption preferences.  Here are just some of their reports: 

  • Chinese Millionaire Report
  • Hurun Global Rich List
  • Chinese Luxury Consumer
  • Chinese Luxury Traveler
  • Chinese Passion Investments
  • Best of the Best – Preferred Brands of China’s Richest

Find a listing of recent reports from Hurun Research Institute on their website.


National median price increase due in part to more luxury home sales

NAR
Based on a report from the National Association of Realtors, in May, the national median existing-home price for all housing types was $208,000, up 15.4% from May 2012.  This marks six straight months of double-digit increases and 15 months of year-over year increases.

While these are statistics we can all be excited about, it’s important to understand what the numbers might mean.  It doesn’t necessary follow that prices on all homes are increasing.  According to NAR’s chief economist, Lawrence Yun, "Part of the steep rise in the May median home price can be attributed to a change in the mix of homes that are selling.  Sales of homes priced below $100,000 were down 9% from a year ago, while sales of homes priced at more than $500,000 were up 33%.”

This is good news for luxury Realtors since it is further evidence of the strength of the luxury niche.