Coldwell Banker Previews International Luxury Market Report Reveals Newcomers On List Of Hottest U.S. Cities For Luxury Home Sales

MADISON, N.J., Oct. 1, 2014 /PRNewswire/ -- Quiet, unassuming areas adjacent to traditional luxury markets have rapidly transformed into hotbeds of luxury real estate in the 12-month period from July 1, 2013 through June 30, 2014.  Leading the way and making its debut in the top 5 U.S. luxury markets for homes valued at $1 million+ is San Jose, where high-end home sales are up a staggering 76% from this time last year, according to the Luxury Market Report prepared by the Coldwell Banker Previews International® marketing program. 

With Silicon Valley luxury real estate on fire, the affluent enclave of Atherton doubled its sales in the $10 million+ range from 2013.  Burlingame, located approximately a mile from Hillsborough in Northern California emerged in the $10 million+ list for sold homes for the first time, most likely as the result of low inventory in the Bay Area's most sought-after ZIP codes.

Adjacency is a powerful trend playing out in high-demand luxury cities well beyond Silicon Valley and the Bay Area, notably in Miami. North Miami Beach made its debut among the top 20 cities for $10 million+ homes sold —signaling that luxury buyers are expanding their horizons beyond the typical hotspots of Miami Beach, South Beach and the private communities of Star and Fisher Islands.

Overall, San Francisco led the nation with the highest number of sales in the $1 million+ category—up nearly 57% from this time last year. 

During the last 12 months through June 2014, the top five U.S. cities with the highest number of luxury home sales valued at $1 million+ are: 

The number of sales for four out of five of these top cities is up by at least 36%.  

Extending the range up to the $10 million+ category, Miami Beach and Aspen have another strong showing against long standing luxury real estate epicenters New York and Beverly Hills.

HIGH-NET-WORTH CONSUMER SURVEY
The U.S. high-end residential real estate market remains strong, with nearly half (48%) of all wealthy consumers indicating that they plan to purchase a luxury home within the next 12 months, according to the companion survey of wealthy U.S. consumers with a net worth of at least $5 million (penta-millionaires) conducted by the Coldwell Banker Previews International® program and the Luxury Institute.  Younger buyers are by far the most highly motivated to purchase:  An overwhelming 81% of affluent individuals under 35 plan to buy a luxury home in the next year.

The survey reveals dramatic generational differences:  

• Penta-millionaires 35 and under reported the highest average purchase price of all age groups - $7.8 million -- and have the largest percentage (80%) of all age groups paying all-cash. 
• By stark contrast, wealthy buyers 45-64 paid an average of $2.7 million for their most recent home purchase while buyers 65 and older spent just $1 million. 

The report brought to light strong gender gaps: 

• 70% of women reported paying all-cash for their most recent property vs. 57% of men. 
• Women reported buying more expensive homes than men: 
  • 22% of women spent $10 million or more for their most recent property vs. 13% of men in the same wealth bracket.  
• 46% of women have plans to buy another home in the coming year, up from 31% in 2013.  

Location, location, location may no longer be the golden rule of real estate:

• With the ability to work remotely now a reality for many, only 25% of the under-35 age group indicate that location dominates their search criteria. 
• Instead, 75% say that lifestyle considerations are the No. 1 factor driving their choice of which home to buy. 
• As evidence of this powerful generational shift, 86% of buyers 65 and older say that location remains their top priority.  

Hottest In-Demand Amenities:

• Nearly one-third of all wealthy buyers under the age of 45 count a "green" or "LEED certified" home as more important than it was 3 years ago.
• The trend is also catching on among wealthy buyers of all ages, with 21% saying that they want to buy an eco-friendly home, up from a mere 7% in 2013.
• As homes become increasingly high-tech, 25% now consider a fully automated home a priority.
• 37% of respondents under age 35 and 30% of those with a net worth exceeding $10 million will prioritize safe rooms in their next homes.

The full list of the Top 20 Best Performing U.S. Cities in Luxury Real Estate by price points of $1 million+, $5 million+ and $10 million+, and the high-net-worth consumer survey results can be viewed here www.previewslmr.com.

About Coldwell Banker Previews International^®

The Coldwell Banker Previews International program has been a world leader in the marketing of luxury homes since 1933. The Previews^® program was acquired by Coldwell Banker Real Estate LLC in 1980 and re-launched as Coldwell Banker Previews International, the brand's luxury homes program.  The exclusive group of certified Previews Property Specialists make up approximately 8.5 percent of the Coldwell Banker sales associates worldwide.  Coldwell Banker Previews International participated in more than 20,000 transaction sides of homes priced at $1 million or more in 2013. On average, Previews handles $102.7 million in luxury homes sales every day. Coldwell Banker, Previews and Coldwell Banker Previews International are registered marks licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated. Sales associates affiliated with Coldwell Banker offices are independent contractors.

About Coldwell Banker^®

Since 1906, the Coldwell Banker^® organization has been a premier provider of full-service residential and commercial real estate. Coldwell Banker is the oldest national real estate brand in the United States and today has a network of approximately 84,200 independent sales associates affiliated with more than 3,100 offices in 48 countries and territories. The Coldwell Banker brand is known for creating innovative consumer services as recently seen by being the first national real estate brand with an iPad app, the first to augment its website www.coldwellbanker.com for smart phones, the first to create a iPhone application with international listings and the first to fully harness the power of video in real estate listings, news and information through its Coldwell Banker On Location^SM YouTube channel.  The Coldwell Banker System is a leader in niche markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International^® marketing program.  Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.  Each office is independently owned and operated. Coldwell Banker is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services.

Methodology

Manhattan area active listing data has been gathered from the Real Estate Board of New York (REBNY). Not all Manhattan area real estate brokerage firms make Information about their property listings available to any cooperative resource, including REBNY.  Manhattan area sales data has been gathered from REBNY and from StreetEasy.com, an online consumer and private industry portal that reports closed real estate transactions from REBNY as well as other reporting brokerage resources. Not all Manhattan area real estate brokerage firms report their closed sales to any cooperative resource, including StreetEasy.com and / or REBNY.

All other data has been gathered from the Multiple Listing Service (MLS) databases known or believed to be the primary real estate broker cooperative resources for each market referenced in the report.

All closed sales activity reported is for the annual period July 1, 2013 through June 30, 2014. Closed sales reported to the MLS significantly later than this analysis period will not be included. All active status listing records were downloaded and processed to the same standards, and on various dates, during the months of July and August, 2014.

Property specific listing and sales records were standardized to USPS address city and ZIP Code, inaccurate list and sale prices were corrected when necessary, and all duplicate records were manually excluded. As a result, statistics available via the source data providers may not correlate to this analysis. While all results are believed to be highly accurate, MLS systems do not report all real estate activity in their primary marketplace, and there may have been property transfers not included in this analysis.

Copyright © 2014, Real Data Strategies, Inc. All rights reserved. Licensed for the exclusive use of Coldwell Banker Real Estate LLC.

The Luxury Institute, in partnership with the Coldwell Banker Previews International^® program, conducted research on the topic of real estate during Quarter 2, 2014. This in-depth survey includes responses from 506 ultra-wealthy male and female consumers in the United States. Respondents were recruited and screened to only include those age 21 or older with a minimum gross annual household income of $200,000 and a minimum net worth of $5 million.

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SOURCE Coldwell Banker Real Estate LLC