We are experts in each of our markets, and are delighted to share our insight and information about our global markets with you. Each month, expect up-to-the minute salient and critical intelligence about key markets worldwide.
MORRIS & FYRWALD – SOTHEBY’S INTERNATIONAL REALTY – ASPEN
CRAIG MORRIS
ASPEN/SNOWMASS MARKET REPORT
The Aspen/Snowmass market has been particularly active for the past 30 days… Our official “off-season” begins immediately after Labor Day but September typically stays busy with tourists due to the mild temperatures and fall colors. The month of October, however, is usually slow and uneventful. Not so this year. We’ve had double the activity for same month trailing 2-year period and the high end has come back to life as well. At least 4 properties of $10M and above have gone “under contract” in the period and while the prices are discounted, they are not fire sales. $4-7M has also been an active price point. Ski season is 3 weeks away, snow is on the mountains and quality of life is the best choice when sorting through your priorities…Cheers to a big winter!
REGO – SOTHEBY’S INTERNATIONAL REALTY – BERMUDA
BUDDY REGO, OWNER; PENNY MACINTYRE, EVP
BERMUDA MARKET REPORT
Strong confidence in Bermuda’s high-end luxury market
International buyers continue to gravitate to Bermuda with Rego Sotheby’s International Realty capturing 80% of sales in the high-end luxury sector and experiencing a 40% year-to-date increase in sales of high-end luxury homes over last year. One in every three buyers in this sector is American followed by British and Canadian buyers as well as Bermudian. As of November, there are 19 homes for sale available to international buyers ranging from $3.2M up to $32M.
This month 30 condominiums are available to international buyers ranging from $795k up to $4.2M. The condominium market has had a marginal year-to-date increase in sales volume with only 7% purchased by non-Bermudians, the majority being British buyers.
JAMESON SOTHEBY’S INTERNATIONAL REALTY – CHICAGO
CHRIS FEURER, CHIEF EXECUTIVE OFFICER
CHICAGO MARKET REPORT
Chicago Land sales from August until now have been sluggish. While the majority of our market did not perform, there were three very specific sectors showing significant gains:
1.) Young couples with children moving from downtown out to suburban areas to take advantage of prices that were 35% lower than the peak in 2006. These buyer also Savedon public schools cost vs. private school tuition.
2.) Empty nesters who moved back to the city and paid cash for marquee properties over $2,000,000. These properties are priced well below replacement costs of new construction. As an example, we represent a luxury high rise that has one unit per floor with prices ranging from $2.5-$3.5 million. Three of the units have gone under contract in the last 3 weeks compared with the past 2 years where only 4 units went under contract.
3.) Numerous failed new construction condo projects have been acquired from banks over the past year. New owners are marketing at lower prices, and experience notable sales volume with above average price points in their area. For example, we represent a 240-unit condominium building that was taken back from a developer by Bank of America. Since the bank takeover we have sold 160 units in 14 months. The average closing price has been higher than the average price in this particular area.
Properties that are priced appropriately in our market sell on average within 60 days and at 97% of the asking price. My opinion is that the reduced volume of sales in our area has created an extremely efficient market with tremendous buying opportunities. I cannot predict how long the prime inventory will be available, but it is clear the buying opportunities are now.
BRIGGS FREEMAN – SOTHEBY’S INTERNATIONAL REALTY – TEXAS
ROBBIE BRIGGS, OWNER
DALLAS MARKET REPORT
Dallas, Texas has been a market that came into the recession somewhat late (October 2008) and pulled out significantly in 2010. Prices fell from the top of the market (2007) approximately 30%. Today in prime areas, land values have almost regained their value. Home prices though activity and volume has greatly increased, in many cases values are still slow to increase.
Ranch, land and commercial have seen much more activity over 2009 and seem to be in the national and international areas of interest.
The very high end homes over ten million have had only a few sales, between five and ten million several more and between 2 and 5 very active.
There has been a lull of closings during September, possibly due to our 70 plus days of over 100 degrees and drought. Anyone who could afford to be away was including most agents.
Our feeder markets remain New York, California, business relocations, Mexico in sectors including Oil and Gas, high tech, finance, real estate, and medicine. Dallas is a city of entrepreneurs with a government friendly to business.
SOTHEBY’S INTERNATIONAL REALTY – CONNECTICUT
SHELLY TRETTER
GREENWICH MARKET REPORT
Sotheby’s International Realty continues to lead the town of Greenwich in single-family sales volume with a 23.4% market share through the 3rd Quarter 2011. Our sales range from the $500,000 condo to the $16 million dollar estate. Based on what we have seen to-date in October the 4th Quarter is off to a good start. Greenwich is attracting many overseas buyers and investors as a place to “preserve” money and to lease these significant properties to many families wanting a sophisticated and residential community so close to Manhattan. I am currently negotiating on several properties with a private equity fund that is expanding their business to ‘real estate opportunities’ including many land listings and ‘land banking’ for the future.
The 3rd Quarter finished with a total of 136 single-family homes sold, down slightly from 141 single-family homes sold in the same period of 2010. Year-to-date, the average sales price of a single-family home in Greenwich declined slightly to $2.46 million (-0.5%) and the median price fell to $1.688 million (-3.6%). There were 442 single-family sales, which is a 16.6% increase over the 379 sales for the same period in 2010.
The $5 – $7 million-dollar market is up 88.2% from last year at this time with 32 closings. The $7.5 – $10 million-dollar market has not changed during the same period with 5 closings. The $10 million plus market has seen the biggest decline in sales (-40%) year-to-date with only 6 sales BUT having said that, the highest price closing this month was listed and sold by Sotheby’s for $16,000,000 (A beautiful Conyers Farm estate designed by Shope, Reno, Wharton that is situated on over 21 acres). The good news is that many magnificent opportunities await!
SOTHEBY’S INTERNATIONAL REALTY- THE HAMPTONS
DANA TROTTER, SENIOR VICE PRESIDENT
HAMPTONS MARKET REPORT
Hamptons sales activity and prices have grown by double digits in the third quarter, this is somewhat skewed by our high end driving the market; sales $5m and up. These high-end purchases are coming from both Wall Street and foreign buyers who continue to see Sagaponack as one of the most sought after locations in the Hamptons. Two recent sales in Sagaponack include 18 acres of vacant land on the ocean for $38m and an exquisite estate on 7.5 acres for $22,250,000. We currently have listed a 15-acre family compound in adjacent Wainscott with views to the Ocean asking $38m that will be an incredible deal for the right buyer. With some lenders offering to pay the buyer’s closing costs (Mansion Tax, Peconic Preservation Tax, etc) for a limited time, it’s worth getting a mortgage even if it’s an all cash deal. As we move into the winter and our dormant period, now is the time to get a great deal and, if you qualify, save money on closing costs!
SOTHEBY’S INTERNATIONAL REALTY – WYOMING
THE SPACKMAN TEAM
JACKSON HOLE MARKET REPORT
We have seen increased market activity this fall, particularly in the high-end of the market. The tax structure of Wyoming (tax friendliest state in the Union) continues to attract the “high-end” tax migrators to residency in Wyoming. This should continue to motivate the high-end market coupled with attractive values and all the intangibles that make up our area; protected open space, wildlife, National Parks, world class year round recreational opportunities, cultural amenities, to a name a few. A recent notable sale was a 10,000 sf mountain contemporary home, sited on 40 acres with dramatic Teton Mountain Range views that closed for $19,000,000. A recent pending sale is the 9,800 acres Antelope Run Ranch that was listed for $24,000,000. This historic ranch includes an airstrip, indoor horse arena, 10,000 sf main home, and numerous outbuildings.
SOTHEBY’S INTERNATIONAL REALTY – LOS ANGELES
BARRY PEELE
LOS ANGELES MARKET REPORT
The Los Angeles market (specifically Beverly Hills and Bel Air) has been every active in the high end. We are seeing a good number of sales over 10, a few over 20 and recently the highest residential sale in our local history 85 million for the Spelling Estate in Holmby Hills. The buyer is from the UK and the 23 year-old daughter of the Formula 1 racing founder. She paid 80M for the house, and another 5M was negotiated on behalf of the seller for the wine collection.
We have seen what would appear to be the end of our high-end in-production spec homes come on the market and sell (all within about 30 days). Other than a few brave souls that continued on with spec buying most of that pipeline is drying up. The few that did stay in it will likely clean up because for the first time sine the late 80’s we will be without new spec houses, and Los Angeles is a town where a lot of people have more money than time. More often than not people want to buy a house that needs no work, in fact if they can buy it furnished all the better.
Things will undoubtedly slow down now as our slowest season is always after thanksgiving through the first of the year.
SOTHEBY’S INTERNATIONAL REALTY – NEW YORK CITY
ROYCE PINKWATER, SENIOR VICE PRESIDENT
MANHATTAN MARKET REPORT
This October the upper end of the Manhattan real estate market is hot again! We are short of great inventory and, when something great comes up and if it is correctly priced, it sells right away. There are three requirements for properties to do well in this market: they have to be priced fairly for our very savvy buyers, great condition is highly preferred, and/or great location is paramount. An example of a special apartment, on a beautiful high floor at 740 Park, which featured great entertaining rooms and lovely terraces, and only two bedrooms, sold for $29 million this month. It is a high price, but it is a unique apartment, in great condition in what some consider the best building on Park Avenue. Another example is a penthouse at 970 Park, newly renovated with generous terraces, which has sold for the full asking price of $25m. These are the home runs. Unfortunately for them, some sellers think the homes they have renovated 15 years ago look good enough to pass for good condition, but a 15 year old renovation just doesn’t cut it out here. They are asking prices, which are considered too high by the buyers who are looking at them. These sellers need to be more realistic, if they want to sell. Their prices will have to come down in order for those deals to be made.
Another great motivator to buy/sell is if your new girlfriend doesn’t like your current apartment uptown and wants to move downtown. Alec Baldwin’s real estate transactions this month was an instance of that: a long time owner of his apartment at the Eldorado on CPW and 90th Street, he sold it this month for $9.500.000 and bought an apartment at the Devonshire House, at 26 East 10th Street, for $11.500.000.
These are market movers, and we love that!
ONE – SOTHEBY’S INTERNATIONAL REALTY – MIAMI
MAYI DE LA VEGA, FOUNDER AND CEO
MIAMI MARKET REPORT
The Greater Miami Market continues to lead the country in real estate recovery. With inventory levels continuing to decline to the current six month supply and falling. Prices are on the rise in the better locales. 4580 North Bay Road, a waterfront home in Miami Beach, is a good example of the market overall. After 4 years on the market and a recent price increase, the property just closed for $20 million to a buyer who paid $700,000 more than an accepted offer that fell through 6 months ago. Pending sales at the W residences and several high end condo buildings South of 5th in Miami Beach are rising to the $2,000 per square foot mark. New pre – construction projects like Bellini Williams Island are beginning to sell and many vacant single lots are fetching good prices as home builders step back into the market. Overall, the recovery is well underway and we look forward to a very active season.
SOTHEBY’S INTERNATIONAL REALTY – SANTA BARBARA
SUZANNE PERKINS
MONTECITO MARKET REPORT
The market in Santa Barbara is full of opportunity. Due to many high end buyers sitting on the side lines, waiting to see about what will happen with the next presidential election, there are values here that are amazing. The prices in Santa Barbara are now lower than we have seen since the early 2000’s. For the first time in about 10 years, you can pick up an estate, ranch or a beach front property that have literally not been available to buy for decades. Buyers have never had so much quality options. It is a wonderful opportunity for investors, one that will not come around again for a very long time. Yes, this really is the time to buy.
HOM – SOTHEBY’S INTERNATIONAL REALTY – NEWPORT BEACH/LAGUNA BEACH
ROB GIEM, MANAGING DIRECTOR
NEWPORT BEACH/LAGUNA BEACH MARKET REPORT
The appetite for property in the Newport Beach and Laguna Beach communities continues to gather steam, albeit at a slow and steady pace. A generous supply of inventory in the higher end affords a selection of opportunities not seen here for decades. Buyers who have been watching this market over the last few years are beginning to make purchases, as they feel they have now sufficiently ‘timed’ their purchases. When queried, most of these buyers state they do not anticipate further pricing declines and they are pleased with their recent acquisitions.
Our pool of buyers continues to grow in their geographic diversity. This is consistent with the pattern of buying we have seen in our high-end market over the last decade. We are also seeing more buyers from the Los Angeles area, as they continue to eschew Malibu and its environs recognizing the advantages of our lifestyle, settings, amenities, as well as the convenient access.
I am looking forward to an increasing level of activity in our marketplace in the coming year. For those who might be considering other ocean side or ocean close destinations, they may find a superior alternative in the Newport and Laguna areas. Conde Nast Traveler recently named the Pelican Hill Resort the number one resort in North America in its 2011 Readers’ Choice Awards. Many of the travelers who voted in this poll added specific commentary on how exceptional they found the setting and amenities of the area. This editorial exposure is likely to bring with it more visitors to this area, some of whom will inevitably become buyers.
I have recently closed two homes, one of the beach and one on the bay, that demonstrate a renewed interest in our local high end offerings. The oceanfront property closed at $10 million and the bay front property at approximately $27 million. True to our historical demographics, one was a local buyer taking advantage of a logical move upward in price at this time and the other was a foreign national who fell in love with the area upon his first visit. Another wonderful opportunity on the bay front can be viewed at: http://www.robgiem.com/propertyDetail.php?lID=47&sH=available&pG=1
This charming home occupies a point position on a private island (which is also a cooperative), overlooking the harbor and city lights. Currently listed at $27.9 million, we will be reducing the price imminently by several million dollars for an immediate sale. This is the rare opportunity to acquire a turnkey home, in an exceptional location, at an extremely fair and enticing price.
SOTHEBY’S INTERNATIONAL REALTY – FLORIDA
CHRITINA CONDON/REG FAIRCHILD
PALM BEACH MARKET REPORT
The Sotheby’s Palm Beach Brokerage has seen a remarkable market turnaround and sales performance in 2011. Through end-October, the brokerage’s year-to-date closed sales volume is equal to that of the entire sales volume of 2008, and more than three times the entire sales volume of 2009. SIR Palm Beach’s average sales price is up more than 60% year-over-year. During the month of October SIR Palm Beach closed on a $25.5 transaction, its sixth transaction in the $20M to $30M price range year-to-date. Cristina Condon represented either the Seller or Buyer in each of those six transactions. The high-end “smart money” buyer has returned to the Palm Beach market and has identified the sound value of the Island’s premiere luxury real estate for the purchase of a residence and/or investment.
SOTHEBY’S INTERNATIONAL REALTY – SAN FRANCISCO
GLORIA SMITH
SAN FRANCISCO MARKET REPORT
We experienced a robust high-end market in August with the Dodie Rosekrans estate selling at $33,000,000, another property at $20,000,000 (both local buyers) and one at $27,000,000 (reportedly a New York City buyer). September and October high-end luxury sales have been significantly slower. The primary reason for this downturn is the lack of inventory, especially for homes that are newly constructed or recently renovated. A view home in Pacific Heights or Presidio Heights that has been completely renovated will sell prior to its completion date for approximately $2,000 a square foot. The strong technology sector is driving our market from Silicon Valley to Napa Valley. San Francisco continues to get the highest prices per square foot in Northern California.
BRAZEN SOTHEBY’S INTERNATIONAL REALTY – SEATTLE
JOSEPH BRAZEN
SEATTLE MARKET REPORT
In the Seattle area during these past 90 days we have been seeing increasing sales and some leveling off of prices. The number of completed transactions in the Seattle area jumped 32 percent over last year. Overall pending sales rose more than 20 percent over the same time last year. What we need now is more inventory!
There has been an influx of cash buyers in the upper price points, especially on the Eastside area around Bellevue. Cash buyers have the upper hand in negotiating these best deals.
Our Firm recently had a property in the Town of Clyde Hill (Bellevue) listed at 1.1 million (priced aggressively) and in 6 days we had 34 written offers on the property pushing the sales price to 1.6+. It showed us that for the right property, buyers are out there, and are looking for the best deals. The other interesting note is that out of all these 34 offers 26 were Asian/Pacific buyers (Hong Kong, China, Korea) wanting to purchase into our Seattle market.
Our highest sale in 2011, so far this year, was a property in the town of Hunts Point (Bellevue) that was listed at $19,688,000 and sold for $14,750,000 to a local family.
BURGER – SOTHEBY’S INTERNATIONAL REALTY – SOUTH OF FRANCE
CYRILLE JALON
SOUTH OF FRANCE MARKET REPORT
At the moment, the market in south of France is very slow for properties listed in a price range of 5 to 10 M€; additionally, the market for villas or apartments in a price range between and asking price of 1 to for 4M€ are going down because of the new tax rules concerning capital gains that will apply on the 1st February 2012; owners wants to sell before this deadline. The good news is that some good deals could be made.
(The rates for non-French resident Europeans remain unchanged at 19%. For those outside the EU the rate is 33.3%, whist for residents of countries without any taxation agreement with France the rate will be 50%. Rates for French residents will rise from 31.3% to 32.5%). By working with an excellent attorney, a buyer can best structure the property purchase.
Recessions and debt crises are largely not affecting the top end of the property market. We have an increase in inquiries for properties listed for more than 30 M€; the buyers are coming mostly from Russia Ukraine and Kazakhstan but we do also notice a comeback from the American buyers.
It seems that the economic situation may tend to reinforce the value of exceptional properties. I invite you to read the article in this link http://www.independent.ie/national-news/dereks-dream-to understhome-is-now-barclays-nightmare-2621810.html.
Finally the property sold 3 days before auction to a Kazaks for 65 M€ and there were 60 Buyers from all around the world identified by Barclay’s bank. That is some major buying power!
SOTHEBY’S INTERNATIONAL REALTY – SWEDEN
JOHAN LEFEVRE
SWEDEN MARKET REPORT
The Swedish property market can be divided into two unique markets; The Stockholm market and the rest of Sweden. In Stockholm you still have high demand, especially in the luxury segment and our figures are up 15% from last year. In the rest of Sweden the markets are slower with a more hesitant buyer; this often leads to lower asking prices and consequently good investment opportunities for the discerning buyer.
We have started a totally new and very successful service in our offices: we are the first luxury real estate company in Sweden to initiate a buyer’s agent service, which differentiates us from our competitors and also enables us to provide better service to our potential buyers. We have, in a short period of time, been very successful, with completed assignments already within the first month. Incentives like these keep us in the top position in our market.
De RHAM – SOTHEBY’S INTERNATIONAL REALTY – SWITZERLAND
NATALIE MIK
SWITZERLAND MARKET REPORT
Switzerland keeps being a buoyant market based on its long-term fixed & low interest rates (>3%). Despite the strong Swiss Franc, we see many foreign buyers looking to buy holiday homes or trying to escape from high taxed regimes (UK, Germany, France) and relocating to Switzerland as primary residents to benefit from the tax advantages (in form of lump sum taxation).
The local market remains strong, especially in Geneva & Lausanne.
Last month: Two sales of luxury apartments at CHF 7 Million sold in a high-end building overlooking Lake Geneva sold to one Russian and one Swiss client.
PEAKS REAL ESTATE – SOTHEBYS INTERNATIONAL REALTY – TELLURIDE
BILL FANDEL
TELLURIDE MARKET REPORT
The Telluride, Colorado market continues to move in fits and starts, with limited pockets of strength focusing on the town’s historic downtown core area, ski-in/ski-out properties & large trophy ranches. YTD the market is down in gross dollar volume by 29%, while the transaction volume is up 19%. High-quality housing stock in the Town of Telluride continues to sell at over $1,000 per square foot, though consumers market-wide remain intent on pursuing “value-plays”. After an acute slowdown during our mid-summer associated with the government debt crisis and ongoing challenges in the European credit markets, wealthy cash-buyers have cautiously returned to the market over the last three week’s time. Specific interest has been on well-priced estate properties along ski trails, one-of-a-kind in-town properties and large tracts of land by investors looking for long-term hedges against inflation, though little urgency on the part of buyers remains an ongoing challenge for us. Buyers continue to come out of the New York, Texas, Chicago & California markets, with some positive results for Q4 still possible.
SOTHEBY’S INTERNATIONAL REALTY – CANADA
CHRISTIAN VERMAST, PAUL MARANGER, FRAN BENNETT – THE TRILOGY TEAM
TORONTO MARKET REPORT
The Toronto market is set to finish 2011 with the second best year in its history for sales. September has experienced a strong 25% growth in sales (September 2011 compared with September 2010), despite volatility in global capital markets. Prices have risen 10% year-over-year. With returns like this, who can blame Canadian and foreign buyers for favouring traditional “bricks and mortar” investments? An environment of low interest rates, strong & diversified employment base, and political stability has created the perfect formula for long term investment in Toronto. Our team just completed two international transactions: (1) the second highest sale in Rosedale within the last two years to an American executive couple relocating to Toronto and (2) the lease to the CEO of a British blue chip corporation on a top tier Rosedale street.
TTR – SOTHEBY’S INTERNATIONAL REALTY – WASHINGTON D.C.
MICHAEL RANKIN, FOUNDER/MANAGING DIRECTOR
WASHINGTON D.C MARKET REPORT
The upper end market (5 + million US dollars) in the Metro Washington area is up 25% YTD in the number of units sold while the average sales price is slightly higher. The 1- 4 million (US dollars) market is up nearly 15% with an average price increase of 2.7%. The buyers are high-level US Government appointees, lobbyists, World Bank, IMF driven consumers.
In the past two months, we are experiencing a downward trend in the number of units sold and sales prices. The next 12 months may continue to slow down as buyers and seller sit on the sidelines to see if we have large changes in the US Congress and a new US President.
Due to globalization, my client’s lifestyles and real estate acquisitions were becoming increasingly international. I realized that beyond being a Bellevue/Seattle real estate expert I had to expand my reach and position myself as a global real estate advisor. To that end, I have been invited to be a founding member of a new and exciting global partnership of some of the most successful real estate professionals in each key market worldwide. The scope and stature of this partnership represents a first in our industry; together we are the most powerful real estate team in the world. As an example, more than simply having access to the Sotheby’s offices in Switzerland, Brazil, Russia, Italy, Hong Kong, Canada, London, etc. my partners in those markets are the top broker/owner’s of those offices. We work together in lockstep enabling us to have our fingers on the pulse of the global real estate market at all times. I am also able to track and assist my clients’ progress through any deal they do, wherever the property is. Through me, you now have direct access to the contacts, insight and resources of the best of the best real estate professionals in the world. Now if you are considering a residential, commercial or investment acquisition or sale, anywhere in the world, we are in a position to help you.