Archive for the ‘Luxury home survey’ Category

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The changing luxury market

April 20, 2010

 

The Changing Luxury Market

I am a specialist in luxury homes and marketing luxury goods to clients throughout the world. This current economic climate though has changed my opinion of the definition of luxury. Times change, people change and luxury has changed.

Luxury clients were once an elite group of individuals who were fairly obvious to even the most amateur of sales executives. But luxury elite status has dimmed somewhat as firstly, many people are now able to afford luxury goods and secondly, many luxury clients are experiencing their first economic crisis of a lifetime.

Today’s luxury homeowner may look and feel like luxury (expensive diamonds, cars, art) but underneath their demeanor is a homeowner who is living month to month and wondering how to maintain appearances.  It’s a fragile world and frankly, they are not prepared for what is to come.

Today’s TRUE luxury client may look different and seem different. The smart ones are people who have not fallen prey to every excess on the market, purchased a bucket load of baubles and continue to drive the latest most expensive cars. I am finding many luxury clients asking me to assist them as they work through a financial downturn they never anticipated or saved for. It’s a scary world.

Today’s luxury client could mean dreadlocks and diamonds. In other words – today’s luxury is not the obvious…in fact, it’s the reverse. They are the people you least expect and they have invested well and with discretion. They may drive a Ford and not have a multi-million dollar medieval castle. They wear jeans and Nikes. They are totally unique and totally in tune with the market. 80% of today’s luxury buyer is tech savvy and researches every purchase. And most importantly, today’s luxury customer rarely buys on impulse. Long term investments are the rule with multiple properties instead of one show home. It’s actually an interesting turn of events.

I am reminded of my grandmother who came from great wealth but lived her later years in a charming bungalow of about 970 square feet. She mowed her own yard in knee highs and pearls. She drank her tea on fine china in a tiny kitchen. That’s today’s luxury. They are different, they act different and they have a certain rule for living that is going to redefine the future. They may not have a million dollar home but their home will be chic and charming. Gaudy is out and tasteful and charming is in. Small is the new big. This is going to be amazing to watch the old world appeal of  outrageous display transformed by a new era of discrete buyers.

To quote F. Scott Fitzgerald, “The rich are different…”

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Sotheby’s Survey says…

July 12, 2008

ARCHITECTURAL DIGEST AND SOTHEBY’S INTERNATIONAL REALTY® BRAND RELEASE EXCLUSIVE SURVEY FINDINGS ON

LUXURY REAL ESTATE MARKET CONSUMER TRENDS

Survey Findings Contradict Media Perceptions in the Marketplace

New York, N.Y. (July 7, 2008)-Despite media reports to the contrary, real estate is still considered a sound investment and affluent consumers are confident both in the current housing market and that the value of their home has remained constant, according to a consumer research study undertaken by Architectural Digest with Sotheby’s International Realty Affiliates LLC. In the newly commissioned survey, “Seeking an Extraordinary Lifestyle,” 85% of respondents agreed with the statement, “I think real estate continues to be one of the better investments a person can make.” The study further revealed:

* 72% of respondents believe their primary home value has remained constant or increased in value over the last 12 months (46% remained constant; 26% increased).

* Nearly two-thirds of respondents report that current conditions have “no effect” on their likelihood to sell their primary home (63%).

* In the coming year, 79% believe the value of their primary home will continue to remain constant or increase (55% remain constant; 24% will increase).

* In the next year, more than half (54%) of the million-dollar homeowners plan to buy, sell, build or invest in a new home.

* 69% of million-dollar homeowners agree that now is a good time to add to one’s real estate holdings.

* 71% agree, “Over time, nothing beats real estate for building one’s personal wealth.”

The respondents feel that the media plays a role in the perception of the current real estate market conditions:

Half (50%) of respondents think the media exaggerates conditions to make the market seem worse than it is.

“This study confirms that even in a downturn economy, our readers are what we call ‘recession- proof’,” said Giulio Capua, vice president and publisher of Architectural Digest. “They continue to spend money on real estate and other luxury goods and services.”

According to Michael R. Good, president and chief executive officer, Sotheby’s International Realty Affiliates LLC, the study proves that real estate continues to be seen as a valuable investment opportunity, especially among consumers in the luxury market.

“This study validates the assertion that real estate is one of the best long-term investments a person can make, regardless of current market conditions. Affluent consumers know that real estate plays a key role in their long-term strategy to increase personal wealth,” said Good. “And among those consumers seeking to add to their real estate portfolio, the top criteria for choosing a property are location, price, amenities and home features.”

Research Methodology

Beta Research Corporation conducted a geo-specific mail survey to 3,500 Architectural Digest subscribers with a household income of $100,000+ and a home valued at $1,000,000+ on behalf of Condé Nast Publications in the following designated market areas: New York, Los Angeles, Chicago, San Francisco/Oakland/San Jose, Boston, Atlanta, Miami/Ft. Lauderdale, San Diego, Denver and Detroit. The survey was conducted between February 19 and March 14, 2008. There were 510 respondents.

About Architectural Digest

Architectural Digest is the world’s definitive design magazine, reaching an audience of over 4 million readers each month. The magazine features the work of world-class authors and photographers and regularly presents a “first look” at the homes of leaders in the fields of entertainment, fashion, business, society and the arts. For more information, visit http://www.architecturaldigest.com

About Sotheby’s International Realty Affiliates LLC

The Sotheby’s International Realty network currently has more than 9,500 sales associates located in more than 485 offices in the United States and 32 other countries and territories.

Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. In February 2004, Realogy Corporation, a global provider of real estate and relocation services, entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system by Realogy’s subsidiary, Sotheby’s International Realty Affiliates LLC. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744. For more information, visit http://www.sothebysrealty.com.