A TURN FOR THE BETTER...

National Association of Home Builders’ director of economic services says, “For the first time since World War II, I think [foreign] people are more optimistic about the US housing market than Americans.”  

Wall St Journal reports that the successful Sekisui House Ltd, a very large home builder and developer in Japan, is seeking to enter the US housing market and has teamed up with Newland Real Estate Group LLC of San Diego to acquire nearly 500 acres outside Houston which could house more than 1 200 homes.  Local brokers said the price was most likely over $10MM.  

It is anticipated that it will take three years to plot the development and get the project through the approvals process.  

Foreigners are not afraid of the US market as evidenced by the fact that 262 of the a Miami luxury condo’s 372 units have sold and almost 90% of the buyers are foreigners, all paying cash.  It includes a 28,000 sq ft spa and infinity pool on Biscayne Bay.  Units that once sold for up to $670/sq ft now average $319. Hotel-like service is offered, condos are glamorously appointed, great water views abound, daily housekeeping included and a celebrity chef offers room service.  It appears that foreign investors are buying real estate rather than investing in the US stock market, planning to rent out properties and sell when the economy turns around.  It is reported that 80% of all current Miami condo sales are with foreigners.  A property management cottage industry has sprung up across the US to accommodate these foreign buyers.

 

Locally, The Related Group has held many seminars, e.g. at Robb & Stucky in Boca and at the Boca Marriott, in the past few weeks showcasing their Ft Myers condo complex they purchased at a distress sale and are now offering at very low prices.  Seminars are also being held for condo complexes in foreign cities, and it is reported that buyers are astonished at the values, wondering if they are too good to be true.  They ARE true.

If you would like more information on any of these complexes or similar properties, contact Marilyn Jacobs, Luxury Home Specialist at 561-302-3388.

ZILLOW INDICATES WE HIT BOTTOM AND PRICES ARE SLOWLY RISING...

ROBB & STUCKY’S STAGING TO SELL 

CAN ALSO GIVE YOU RE-DO IDEAS 

IF YOU ARE NOT SELLING!

Seminar to be held on 10/28/2010 at 2 pm at Robb & Stucky in Mizner Park, Boca Raton, upstairs in the Community Room.   

Get tips on how to “prep” your home for a faster sale to make it stand out from others on the market.  Or, if you are not selling, how about ideas to spruce up your home like the experts would do!   

Before or after the seminar take a look through their fabulous furniture and accessory items… just one new beautiful piece can update and enhance the look of your home.

GET OUT THE MEGAPHONES… A FOOTBALL STADIUM 

IS COMING TO BOCA

The Florida Board of Governors unanimously approved a resolution authorizing FAU to finance part of the construction of a 30,000-seat stadium and associated improvements.  In July the FAU Board of Trustees had unanimously approved the project and its financing plan.

FAU’s Innovation Village is located in the north central campus area where the stadium will be built.  This is a gathering place for alumni, students, faculty, staff and community members to live, learn, dine, shop, enjoy and build tradition.  A student housing facility is under construction and scheduled to open in the fall of 2011.  A retail area is being planned.

The $70MM project will be home to the two-time bowl winning OWL football team.  20 luxury suites will be featured with 1,000 club seats and, of course, the latest state-of-the-art amenities.  Completion is scheduled for fall 2001, with construction expected to start in October 2010. 

All together now, let’s give a cheer for the new excitement that is coming to town!

LOOKING FOR A CLASSY, 

REGAL RENTAL?

 Head over to Port of Leith, Edinburgh and climb aboard the Royal Yacht Britannia, launched in 1953.  Walk the red carpet and be greeted by a Pipe Major. 

 This grand ship has played home to The Queen and Royal Family for a half century and entertained kings, queens, presidents and prime ministers worldwide.  It is decked out with comfortable casual furniture and the walls hold aged family portraits.  The Yacht is said to be Scotland’s most popular attraction.

The State Dining room holds gifts to Her Majesty from 968 official worldwide state visits.  Four honeymoons took place on the yacht including Princess Diana and Prince Charles honeymoon, but if your heart is set on having your wedding there: sorry, no weddings allowed.  Suitable for a corporate event, the casual setting is regal and can include a harpist or pianist, fireworks, dancing to jazz or a traditional celtic band.  Up to 176 guests can be feted for dinner or up to 380 for champagne receptions. 

 Staff is white-gloved and served in fine china with silver engraved with Britannia’s crest.  Public tours are available during the day and imagine yourself sipping afternoon tea, sitting on a Britannia deck chair, overlooking the Firth of Forth.  Cover the Royal Deck with an awning, plan an awesome dinner and invite the 80 people you want to impress the most.   

Cheerio!

IN YOUR WILDEST DREAMS….

While Only “a dream” at the moment, just like the Flash Gordon comics of years ago that put a man on the moon… which happened during our lifetime… the design has been made for a yacht that can fly.  It has been exhibited at the Paris’ Air & Space Museum.

Just click the button and your “superyacht with wings” takes you where ever you want to go.

The masts can be operated independently and sails are stored within them.  The masts become wings when flying is preferred.  46 meters, with 4 mobile masts reaching 40’, the designer said he did not mean to make it feasible, but rather an innovative concept. 

Any bets on how soon this will become reality?

IF SOMEONE YOU KNOW DOES NOT HAVE HEALTH INSURANCE…

CVS/pharmacy and MinuteClinic, one of their divisions, will be offering free flu shots to those without health insurance this upcoming flue season.  Vouchers will be issued to clinics and health centers across the country that are redeemable for free flu shots.  The clinics and health centers will identify uninsured individuals from their existing patient populations starting September 20^th.

CVS Caremark the largest US pharmacy health care provider, will be partnering with Direct Relief USA for this program.  Direct Relief is a non-profit organization working with 1100 clinics and health centers in all 50 states.  They provide free medications and supplies for low-income and uninsured patients, with most facilities affiliated with either the National Association of Community Health Centers or the National Association of Free Clinics. 

Names and locations of the voucher providers will be available September 20^th by using the MyFlu Shot Scheduler at www.cvs.com/flu or calling 888-FLU-SHOT.  Vaccinations will be available 7 days a week during regular business hours with no appointment required.  Participants will receive, after getting the shot, a discount on pharmacy products.  You can check that out at the site just mentioned.  If you know anyone who wants even minimal health care coverage, call Licensed Independent Insurance Agent Marilyn Jacobs at 561-302-3388 to get details for an affordable health plan.

DID YOU KNOW...

Local Trends / Perspectives

• 70 % of Boca Raton's Residential Resort Clubs have a mandatory service charge
• 60 % of these Clubs have a food and beverage minimum
• 40 % of these Clubs have both a food & beverage minimum and a mandatory service charge
• The average monthly mandatory service charge at these Clubs is $127
• The entry fee refundable portion at these Clubs has decreased 14% in the last 3 years
• Joining fees at these Clubs have increased 21 % in the last 2 years
• These Clubs increased their menu prices an average of 53% over the last 2 years
• Members at these Clubs want more "resort like amenities", such as spa/fitness, family activities and casual dining
• The Polo Club does not have any food and beverage minimum or any mandatory service charge
• The Polo Club is a no tipping Club, tipping is prohibited in all dining rooms, valet parking and at the golf bag drop, 365 days of the year
• The Polo Club is committed to offering the very best in amenities and lifestyle at affordable costs to our Members
• Enjoy "The Good Life" at The Polo Club of Boca Raton!

ILHM PRESIDENT WACO MOORE SHOWS THAT 

“LESS IS MORE”

The September 2010 issue of Better Homes and Gardens features the home of Institute for Luxury Home Marketing President, Waco Moore, built in 1957 and then named as Better Homes and Gardens “Idea House of the Year.”  Waco and his wife Mila Goldman-Moore, who is an architect and served as general contractor after they purchased the house, have kept true to the modern aesthetic, but have incorporated “green features” such as shredded denim insulation and tank-less hot water heaters.  Mila says her favorite element in their bedroom is the easy access to the outdoors and future plans may include a porch with a sleeping alcove in that area.

Before moving in, they stripped the interior down to the studs, maintained the basic floor plan, and removed crown moldings to keep a simplified look.  They also replaced Victorian-style decorative doorknobs. Planning ahead, the inexpensive kitchen cabinets are freestanding, and if they redo the kitchen, they will merely be moved into the garage.  Open storage shelves help to declutter.

Still “The Idea House of the Year,” the Moore’s are in trend with today’s modern times with a non-wasted space floor plan, connections between living areas that are “family-friendly,” natural light streaming in, and a nice indoor-outdoor flow making the house seem larger than its 2100 sq ft.  Towering canopy oaks shade the house and offer breezes and sunlight where it is needed. 

DELRAY INTERNATIONAL TENNIS CHAMPIONSHIP WINS PROVIDENCIA AWARD

DELRAY INTERNATIONAL TENNIS CHAMPIONSHIP WINS PROVIDENCIA AWARD

The annual Providencia Award is the County’s most important symbol of recognition for the local tourism industry, celebrating local businesses, organizations and/or individuals making extraordinary contributions to the vitality and prosperity of the county as a desirable tourist destination.  This year’s award has been won by the Delray Beach International Tennis Championships.  Delray Beach was selected as one of the top10 ”Best Tennis Towns in America” by the United States Tennis Association (USTA) because of the annual International Tennis Championships.  This event brings almost 60,000 attendees, 25% from outside of Florida.

The local tourism industry employs tens of thousands of country residents, adding over $2.6BB annually to the local economy.  The Delray Beach ITC joins previous local winners of note, including The Colony Hotel in Palm Beach, The Morikami Museum and Japanese Gardens, The Breakers Hotel, Kravis Center, Burt Reynolds, Ritz-Carlton, Norton Museum of Art, Boca Raton Resort and Club, Moroso Motor Sports, SunFest, Jack Nicklaus, Marathon of the Palm Beaches, Delta Airlines, Alexander W. Dreyfoos, Jr. and the Palm Beach Kennel Club.

The Delray Beach Stadium and Tennis Center features the ATP Champions Tour and an ATP World Tour, both scheduled for February 18-27, 2011.  The best tennis players in the world participate and draw thousands of visitors to the area.

If you or someone you know would like to own a townhouse across the street from the stadium see sidebar for Atlantic Grove property and call Marilyn Jacobs at 561-302-3388 for a showing. Leasing and pets ok.

PALM BEACH COUNTY LUXURY HOME SALES UP SO FAR IN 2010

PALM BEACH COUNTY LUXURY HOME SALES UP SO FAR IN 2010

 

Luxury market strengthens in Palm Beach County. Seven homes in Boca Raton sold for an excess of $5MM so far in 2010, 2 in Delray Beach (one 25,000 sq ft oceanfront house for $17MM), 2 in Manalapan, 9 in Palm Beach and 1 in Jupiter with a total of 24 in Palm Beach County.  A total of 29 homes sold for an excess of $5MM in 2009.  We will report 2010 end-of-the-year figures in due time.

Gloomy news that July sales of existing homes dropped 25.5% year-over-year has overshadowed new statistics showing summer sales of million dollar plus homes significantly outperformed other price ranges.   “Luxury homebuyers have been buying this summer,” said Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing (ILHM).  “After waiting in the wings, many affluent buyers spent the summer shopping for value and snapping up trophy properties.”

Statistics would indicate that she’s right. According to The National Association of Realtors (NAR), for 2009 million-dollar and above home sales were just 1.2% of total sales or about 61,500 sales nationally.  In July 2010, million dollar plus market share was up to 1.9%.  While sales of homes in the $500,000 and above range rose dramatically in June, the million-dollar-plus market segment was the only price range in July showing positive growth compared to last year.  “The mix of what is selling has shifted in favor of homes priced at $750,000 and above,” added Moore-Moore.

NAR’s report that July’s median sales price increased 0.7% year-over-year may be more a function of increasing sales of expensive properties relative to other price ranges than an indicator of across-the-board home price appreciation.  According to the ILHM National Luxury Market Report -- which does a weekly analysis of luxury homes for sale in more than 30 major markets -- after a dramatic rise in upper-tier inventory, which started in January of this year, the numbers of luxury homes for sale has declined about 5% since the beginning of July.  Along with a decrease in inventory, there has been a decline in asking prices.  Forty three percent of luxury homes currently on the market have had at least one reduction in asking price over the last 90 days.  An additional 19% have been pulled off the market and subsequently relisted. 

“While I wouldn’t say the luxury market is in recovery,” said Moore-Moore, “the growing market share of luxury sales relative to total sales, a slight downward trend in inventory, and sellers who are more realistic about price are factors shifting the affluent into a buying mode.”

SEARCH FOR UNCLAIMED ITEMS

The State of Florida currently has unclaimed property accounts valued at more than $3BB from sources such as:

• Dormant accounts in financial institutions, insurance and utility companies, securities and holdings
• Tangible property including watches, jewelry, coins, currency, stamps, historical items and others from abandoned safe deposit boxes

Unclaimed money is deposited into the state school fund and used for public education. However there is no statute of limitations and have the right to claim their property at any time.  Try your search here: Unclaimed Property Search.  If you want to go through a catalog of items being auctioned today that is on the same site.

THE BRITISH HAVE DONE IT AGAIN WITH THE WORLD’S PRICIEST APARTMENT SALE

THE BRITISH HAVE DONE IT AGAIN WITH THE WORLD’S PRICIEST APARTMENT SALE

Sale price: about $220MM.  London skylines, private wine tasting facilities and top security features including bullet-proof windows and a panic room, SAS-trained bodyguards and floor to ceiling windows with fabulous views of central London were the major attractions to the 6-bedroom 2-floor penthouse in One Hyde Park, Knightsbridge, London.  Eye scanners are featured in private elevators to prevent unwanted intruders.  The building is heated using geothermal bore holds sunk 450’ to extract heat from the earth’s crust.  The apartment contains an air purifier to ward off poison gas attacks.  The new owners, anonymous, expect to move in by the end of the year.

Eighty apartments have been sold in this new unique complex, one of the world’s most expensive residential areas.  This upscale neighborhood has an average apartment cost of $30MM.  65% of all properties in the block have been sold with 30% of the buyers Europeans and 25% Middle eastern as the worlds financial elite flock to London, taking advantage of the weakness of the pound. 

There is also tunnel access to the Mandarin Oriental Hotel and their 24-hour room service with TV chef Heston Blumenthal opening a fabulous new restaurant and to spas and squash courts and the unit has its own car park.  

“Trophy properties” sales remain strong.  Some speculate that trophy buyers of today might be from Nigeria or the Middle East, with large oil profits facilitating these sales.

SHOULD YOU BUY INSTEAD OF RENTING?

• NOW IS THE BEST TIME EVER TO BUY A PROPERTY IN FLORIDA. Many homes in move-in condition and fixer-uppers are now very affordable and may be less expensive than renting, even leaving comparable dollars over for a maintenance reserve fund
• Interest rates are still low. For a few extra dollars a month on a 30-year mortgage a first-time buyer could own the house free and clear within 15-20 years, saving interest payments.
• A 1% rise in interest rates will add several hundred dollars per year to even a moderately-priced home so now is the time to take advantage of these low low rates.
• The trend upwards in home market value has already begun in some markets and will begin in others as the foreclosures and short sales are sold.
• First--time buyers incomes will increase over time, their house payment will remain stable, and will be appreciating in the future.
• Paying rent may be buying your landlord a house – why not buy your own house?
• How long do you anticipate living in a house you buy… if interest rates DO dip short term, by the time you sell the property the home market value may have appreciated.
• Rents can rise.

To find out how much house you can afford, get a mortgage pre-approval.  We can recommend lenders to you.

 

BP OIL SPILL ESTIMATED DAMAGE IN DOLLARS

CoreLogic estimates that the BP DeepWater Horizon oil spill will cost homeowners in gulf coast communities $648MM over one year and over 5 years as much as $3BB.  If the spill reaches the Florida Keys and the Florida Atlantic coast, losses there could reach up to an additional $28BB in 5 years.  The annualized economic value of beach access at risk by oil coming ashore and beaches being closed were taken into account. Premiums were paid by buyers of homes in these coastal communities.  More than 600,000 properties were identified as being within 1000 meters of the coastline in 15 counties from the gulf coast of Alabama to the Atlantic coast of Florida.

FOR MIZNER BUFFS

 

Addison Mizner, Palm Beach society architect, created the “Palm Beach style” in the late 1910’s. It was very well received, and in 1918, he designed the Everglades Club on Worth Avenue. The demand for his work mushroomed, so to keep up with demand, he founded his own factory, Mizner Industries, which grew into one of the largest tile and ironwork Spanish design manufacturing companies in Palm Beach in the 1920’s.  They also made hand made pottery, stamped metal fixtures, cast stone, columns, windows and door surrounds, indoor and outdoor furniture and art glass.  Furnishings were often distressed to give them an antique look.   He imported antique furniture, decorative tiles and other items to add to his line.  His homes became known as the “Mediterranean Revival” style.   

By the 1950’s, styles had changed, and there was not much demand for his style of work.  Lately, the “Mizner Style” has come back into vogue. There is a current exhibit of his works at Town Hall, from Monday thru Friday from 10 am to 4 pm.  Group tours are welcome – call 561-395-6766, ext 100 for more information.

LUXURY HOMES MARKET UPDATE

 The Institute for Luxury Home Marketing National Report

for the week of July 25, 2010 looked at 

39,064 luxury homes on the market.
The ILHM Luxury Composite Price this week is $1,082,759.

These homes have been on the market for an average of 123 days.

The Market Action Index measures available supply 

relative to the current level of demand. 

Index value above 30 indicates conditions favor the seller.
CURRENT MARKET ACTION INDEX IS 12

This week´s median price is $1,082,759
Asking price per square foot is $305
Average Days on the Market: 123
Percent of Properties with Price Decrease: 41%
Percent relisted (reset Days on Market): 21%
Percent Flip (Price Increased): 3%
New Listings: 1709
Absorbed this week: 1635
Median House Size (square feet): 3284
Median Lot Size: 0.50 - 1 acre
Median Age: 30
Luxury home prices across the ILHM National
sample have stayed relatively stable in recent weeks.  


Marilyn Farber Jacobs is a Founding Member
of The Institute for Luxury Home Marketing