The boom in residential real estate sales might have receded, but luxury homeowners remain positive about the market, according to the 2007 Coldwell Banker Previews International Luxury Survey. Affluent women were even more bullish in their market outlook than men.
Of 301 U.S. homeowners surveyed, 56 percent said they expect the value of their home to increase somewhat and 10 percent expect it to increase significantly during the next 12 months. Regarding the value of their primary home over the next five years, 36 percent believe it will increase significantly while 58 percent believe it will increase at least somewhat.
Four in 10 respondents said they are considering buying a home in the next year as a secondary residence for family use, with 38 percent interested in purchasing as an investment and 22 percent buying a retirement property.
Homeowners surveyed had a primary residence valued at more than $1 million and more than $1 million in assets that can be invested. In California, where the median statewide home price is $562,380 compared with the national median of $223,000, those surveyed had homes and assets worth more than $2 million each. The survey was conducted online in April by Affluent Dynamics, an independent market research firm.
Of those who plan to move their primary residence, 61 percent want a bigger home and 51 percent are relocating. Those affluent homeowners”™ decision to move was based more on lifestyle than a particular life stage, a market researcher said, with 47 percent seeking a different floor plan or layout, 43 percent looking to move to a waterfront location and 41 percent wanting to be closer to recreational activities.
A large majority of respondents said they have designer kitchens and formal landscaping, while half have home entertainment centers. About one in three have household wine cellars.
About seven in 10 homeowners, or 72 percent, said they have a room in their home devoted almost exclusively to entertainment. Of those, three in 10 said they have movie theater-style seating in their homes.
Kate Rossi, president and chief operating officer of Coldwell Banker Residential Brokerage of Connecticut and Westchester County, said the survey “provides us with an important look at the real estate expectations, trends and desires of affluent home buyers and sellers. This information is an indication of the long-term investment strategies for luxury homes.”
The Coldwell Banker Previews International program has been marketing luxury homes since 1933. Its Web site, HYPERLINK “http://www.coldwellbankerpreviews.com” www.coldwellbankerpreviews.com, features more than 10,000 luxury properties with an average listing price of more than $1.7 million. In 2006, the Coldwell Banker system took part in more than $47 billion of sales volume of homes valued at $1 million or more.
