Many markets are seeing very tight hosing inventory right now. According to NAR, the nationwide median days-on-market is just 78 days. Generally speaking, prices are up, but year-over-year sales are down, in part due to the lack of available inventory.
Here are the ten markets with the shortest days-on-market:
Read the full NAR release: Recovery Broadens as More Markets See Price Increases
Based on recent data from NAR, OPP News reports a spike in US real estate purcheses by Chinese buyers.
Chinese spending on US property sold by Realtors almost doubled in the year to March 2014, jumping from US$12.8billion to US$22 billion, according to the NAR.
The sales, which were boosted by the appreciation of the Chinese Yuan, accounted for almost one-quarter of dollar overseas sales, the NAR’s 2014 Profile of International Home Buying Activity states.
Although Canadians bought more US homes, Chinese buyers spent more than double on each home, with the average Canadian median value at US$212,500 compared with US$523,148 spent by the Chinese.
One of the authors of the NAR report, Senior Vice President, Lawrence Yun, goes further, saying, “It’s just the beginning of a tidal wave."
If your first guess about the three favorite shopping locations for U.S. households with a $1 million or more in net worth includes high-end retailers, guess again. A new report by The Shullman Research Center reveals that an overwhelming 62% of millionaires say their favorite place to shop is Amazon. Coming in at second place, with a hearty 54% “approval rating,” is Walmart. Clocking in at third, with some 49% of the vote is Target.
If you look at the information more closely, you’ll see that shopping preferences differ based on the generation. And although the Silent Generation (those 68 or older) represent about 7% of millionaires, the report is, well, silent on this group.
This information reflects the fact that millionaire households may have accumulated high net worth, but they are still frugal shoppers.
*Top 10 of 100 shopping locations researched by The Shullman Research Center
With Baby Boomers and even more so with Millenials, transportation seems to be a growing factor in the classic "Location, location, location" value equation for real estate.
This article on The Atlantic Cities site highlights a couple of new studies that look at where Millenials want to live and what they value when it comes to picking a place to call home. It is interesting to see just how much the reported values differ from previous generations, and how little the traditional "suburbia" of the last 60 years appeals to this new and very large cohort.
In the first study, here is what the Millenials said:
Michael Myers, Managing Director at the Rockefeller Foundation sums it up like this:
"This survey reinforces that cities that don't invest in effective transportation options stand to lose out in the long-run. As we move from a car-centric model of mobility to a nation that embraces more equitable and sustainable transportation options, Millennials are leading the way."
The second studyqueried both Millenials and Baby Boomers and found that both group want many of the same things:
- Better transportation options
- Walkable communities
- Technology-enabled cities
- Housing that would allow “aging in place.”
The study also found that...
68% of respondents believe the U.S. economy is fundamentally flawed, and that the path to prosperity lies in building up local communities—not through recruiting companies but by concentrating on these same basic elements of desirable places to live.
Interesting trends to watch.
According to the just released EllimanReport: Quarterly Survey of Co-op and Condo Sales, the Manhattan market is going strong.
Most first quarter sales in seven years as listing inventory stabilized.
There were 3,307 sales, 34.6% above the same period last year, marking the highest first quarter total in years. Listing inventory was essentially unchanged at 4,968 after three years of declines.
Average price per square foot set a 25-year record.
The average price per square foot of a Manhattan apartment reached a record $1,363, 23.6% above the prior year level. Median sales price increased 18.5% to $972,428 from the prior year level, but remained 5.1% below the record set in the second quarter of 2008.
Days on market and listing discount tightened.
The time to market a property was 17 days faster than the same period last year, falling to 115 days. Listing discount decreased 2.6% from 4.3% in the same period last year.
As luxury real estate professionals, we strive to provide our clients with outstanding service. Understanding a client's values and expectations is essential to meeting and exceeding their expectations, as is knowing the measures they will use to evaluate the service they receive.
What do the affluent expect?
Based on a new report by Vanguard and the Spectrem Group, it would appear that they expect communication & competence.
If you've completed our CLHMS Training this should sound very familiar!
While the report looks at the affluent and their relationships with investment advisors, their expectations for real estate professionals are very similar.
As we can see, the two most important criteria are:
What does "in a timely manner" really mean?
Pretty darn quick. As we can see in the chart above, among the Ultra-High-Net-Worth, almost a third of them expect a return call or email within two hours. In almost all cases, a response two days later is a losing proposition.
Discuss and know your clients' expectations on communication. As you begin to work with a buyer or seller, they will have expectations and preferences about communication. Ask, “How would you like me to communicate with you and how frequently?” Also establish their expectations as to response time.
They may ask for a weekly phone call and an additional call when something important occurs. Or, they prefer that the principal form of contact be a weekly email with a phone call as necessary. Whatever their preference, it is important for you to be aware of it. If you have a specific communication schedule, share that with them. “I call my sellers every Monday night between 6:00 and 8:00. Will that work for you?” If they tell you that’s when they play bridge at the club, you’ll need to agree on another communication schedule. In short, agree as to when and how you’ll stay in touch. The relationship will benefit and they’ll feel more positive about you and
Communicate your knowledge and expertise. When working with the affluent, success comes not from who you know, but WHAT you know. Be an expert. Advise your clients from a position of knowledge and expertise, and you will be rewarded with their trust and loyalty.
Over the past few years, Chinese buyers have been one of the big stories in luxury real estate.
Recently, there has been increasing speculation about troubles in the Chinese economy.
There is also growing speculation that A Chinese housing market crash could be even more disastrous than America's (Quartz), and concern that As credit tightens at home, Chinese sell Hong Kong luxury real estate (Reuters).
Will wealthy Chinese sell-off overseas properties to gain liquidity?
Are we seeing the beginning of a bubble-burst?
Diverse, Expressive and Optimistic
Driving a Social Movement Back to the Cities
Struggling, But They Have an Entrepreneurial Spirit
Deal Shoppers and Desire Authenticity
Connected and Want the Personal Touch
Contrary to popular notions, some millennials are quite affluent. About 15% of Americans with assets above $2M are Millennials:
Where do the wealthier Millennilas live?
For more details, download the full report.
Forbes’ new Billionaire List hit the newsstands and the Forbes website this month. The current list of 1,645 billionaires reveals that after four years, Microsoft magnate Bill Gates has jumped over Mexican Carlos Slim Helu to retake the number one spot on the list. The five wealthiest on this year’s list with their estimated wealth and home country:
Other highlights from the list: