The luxury home market is gaining momentum, with prices rising and many areas where upscale housing once struggled now turning into a seller’s market, according to the Institute for Luxury Home Marketing.
“Prices have been trending up fairly strongly since the beginning of the year,” Laurie Moore-Moore, the institute’s founder, recently told the Chicago Tribune. “Inventory has been tight, though we're starting to see a little growth in inventory again. It's not stock-market driven, not necessarily. When you look back at the housing-market downturn, the low point probably was in 2007. Typically, a downturn would be driven by high mortgage-interest rates, but this time it was the whole real estate market that crashed. And at that time, the number of wealthy people in America actually declined, and the number of wealthy households is an extremely important driver of demand.”
But by 2010, there were nearly as many wealthy households as before the downturn, with affluent households recovering fairly quickly, Moore-Moore says.
“This group focused on residential real estate as a pretty desirable asset — for them, a second or third home turned out to be a portfolio play,” Moore-Moore notes. “Driving the recovery, we've had record low interest rates and a perception of bargain prices and then we've had this very affluent group saying, maybe real estate is a smart buy.”
The high-end markets flourishing the most are Baltimore; Charlotte, N.C.; San Francisco; and Washington, D.C., according to a monthly analysis by the Altos Research data firm on behalf of the Luxury Home Marketing. The report tracks 31 ZIP codes with the highest median prices.
But not all luxury home markets are gaining momentum, according to the report. For example, some luxury markets are considered stable, including Atlanta, Los Angeles, Miami, Las Vegas, Denver, and Dallas. Also, luxury-home markets are still seeing prices fall in areas like Chicago, New York, Seattle, and Orlando.
Source: “Luxury home sellers feeling rich again,” The Chicago Tribune (May 10, 2013)
Arcturus -- Along the Potomac River near George Washington Parkway
The international luxury real estate market appears to be relatively immune to economic headwinds, according to a report by Christie International Real Estate, a luxury real estate affiliate network. Christie’s International Real Estate Index monitors record sales prices, prices per square foot, among other indicators in the global luxury real estate market.
London emerged at the top of the network’s index, boasting a record sales price of more than $121 million for a residential property in 2012. In New York, an $88 million sale allowed it to come in at No. 2.
The international luxury market is showing strong momentum, “driven by scarcity of quality inventory and demand from international buyers in many of the world's top destinations,” says Bonnie Stone Sellers, CEO of Christie's International Real Estate.
There are more billionaires worldwide now than there were in 2008. What’s more, the percentage of worldwide millionaires has grown by 55 percent since 2000, according to the report.
As wealth has grown so has the number of home buyers making housing deals in all cash. For example, the report notes that nearly all of the transactions in Los Angeles above $5 million were cash deals; 90 percent in New York; and 70 percent in San Francisco and Miami.
Source: “Global luxury real estate market showing 'strong momentum',” Inman News (March 11, 2013)
Established in 1974 with a mission to reduce homelessness, increase community support and promote self sufficiency, the Good Shepherd Housing and Family Services is operated by a multi-denominational board of directors and staff managing over 70 housing units. Good Shepherd Housing and Family Services is located in the Mount Zephyr Business Center at 8305 Richmond…
The revival in the luxury real estate market is being fueled by growth in jumbo mortgages, Reuters reports. Jumbo loans typically are more than $417,000.
“Jumbo loans are returning to the mortgage market after almost disappearing entirely in the wake of the credit crisis of 2008 and the real estate meltdown,” Reuters reports. “Most lenders stopped making new jumbo loans when the private secondary market dried up in the credit crunch.”
But now jumbo loans are coming back. Lenders are reserving jumbo loan approvals to qualified borrowers, and some reportedly are even offering these “once-pricey jumbo loans at interest rates that are barely higher than conventional mortgages,” Reuters reports.
"The jumbo market may fare better than the overall mortgage market in 2013," says Guy Cecala, publisher of Inside Mortgage Finance.
But while jumbo loan volume was about $200 billion last year, it’s still far below the $348 billion in jumbo loans issued in 2007. Cecala predicts that 2013 volume of jumbo loans will reach about $220 billion.
Source: “Jumbo Home Loans Are Back, But Far Below 2007 Levels,” Reuters (Feb. 26, 2013)
Julie Nesbitt
Julie Nesbitt knows the back trails and by-ways of Northern Virginia real estate.
Established in 1974 with a mission to reduce homelessness, increase community support and promote self sufficiency, the Good Shepherd Housing and Family Services is operated by a multi-denominational board of directors and staff managing over 70 housing units. Good Shepherd Housing and Family Services is located in the Mount Zephyr Business Center at 8305 Richmond…
This is new kitchen in at Potomac Branch.
As kitchens have become rooms for doing more than just cooking, the need to maximize space has become paramount. That’s where cabinets come in handy. Learn about home owners’ options in using these to creative aesthetically pleasing storage solutions.
As the number of kitchen accessories has increased, cabinetry has become both a major necessity and a challenge. That’s because kitchens have become a place for additional tasks besides cooking — entertaining, bill paying, and homework, for example. Also, the cost of cabinetry can be staggering, sometimes as much as 50 to 60 percent of a total kitchen redo.
When it comes to working with buyers or sellers on improving a kitchen, your goal should be to help them understand the pros and cons of overhauling cabinet storage — or whether they should do anything dramatic, as there are ways they can improve cabinetry without replacing it. The key questions home owners should ask are:
Do the kitchen and its existing cabinetry appeal visually?
How well does the cabinetry work to sufficiently store pots and pans, dishes, glassware, cutlery, spices, cookbooks, and other cooking and entertaining accessories?
Based on those responses, they can decide whether to undertake a limited redo or embark on an extensive transformation. Here’s how they can proceed:
Partial Tweak
If a layout works and home owners like their current appliances and surfaces, sometimes they can just reface cabinet fronts with newer materials such as popular cherry, maple, or bamboo. Other times, still less is needed and the fronts can be retained and the knobs or pulls changed out to a more stylish brushed or satin nickel. If space has been wasted in the room, they also might be able to find a place to construct a walk-in pantry that has easy-to-access shelves with specialized inserts to keep everything accessible but out of sight behind a full-height wood or obscured glass door. The latter can provide visual information about what’s inside without home owners having to keep contents meticulously ordered, says Chicago designer Tom Segal of Kaufman Segal Design.
Pantries can vary in size from a basic 2-by-2-foot space to a more generous 4-by-4 with room for shelves on three sides and space to maneuver, or an even bigger 4 by 8 feet with outlets for extra appliances and a secondary sink, says architect David Barbour, whose eponymous firm is based in Bridgeport, Conn. Partial redos may cost just half of what a total overhaul would, he says.
Total Gut
When it comes to replacing cabinets completely because they’re worn or inefficient, home owners have a choice of three major options. They can go for the crème de la crème of custom at the top, semicustom in the middle, and stock at the budget end. The choice depends in part on the level of quality of other items in the room — appliances, countertops, flooring, backsplashes, and lighting — as well as the home’s overall value and how long home owners plan to remain. There’s little point in putting an $115,000 kitchen in a $350,000 home or going through the expense and hassle if home owners will stay put for only a few years, says Segal, who’s redone both clients’ and his own kitchens. He and other design experts recommend not spending more than 15 percent of a home’s value on a kitchen redo. So for that $350,000 home, he advises keeping the budget limited to a maximum of $52,500.
The best way to start is for home owners to add up the linear feet of their existing cabinetry to be sure they’ll gain as much or more storage and then decide, probably with professional expertise, where to locate each type of storage — for example, spices and knives adjacent to an oven, Segal says. Tall, deep cabinets with pull-out shelves make efficient use of space and can be an alternative to a walk-in pantry, if the area of the kitchen is limited. Home owners should also decide whether they want drawers or cabinets — depending on how they like to store their belongings — and if they have enough room to include an island with base cabinetry. The best-designed islands allow 42 inches all around to navigate, measure 36 inches long and 24 inches wide, and have a 12-inch overhang on at least one side to make it work as an eating, bill paying, or homework center, says building contractor and licensed remodeling expert Philip A. Beaubien, whose Beaubien Construction is based in Santa Barbara, Calif.
With all this information in hand, home owners should be able to decide which of the following three levels to go with:
▪ Custom cabinets are constructed from scratch to a room’s specific layout for a seamless built-in look with no gaps between boxes. Most custom manufacturers such as Wood-Mode, Fine Custom Cabinetry and Rutt Handcrafted Cabinetry offer an extensive array of woods, finishes, and custom paint colors; door styles, such as flat or with some type of raised paneling or perhaps glass; cabinet or drawer depths; varied styles and materials for the pulls or knobs; and a large number of specialized cabinet organizers to keep specific items in place. Custom cabinets also come with better exposed hinges for a tighter fit and smoother draw glides, some of which may retract on their own. Beaubien prefers custom cabinets for their handmade appearance.
▪ Semicustom cabinets are manufactured in a large range of sizes based on 3-inch increments, and numerous materials and finishes are available — just not as many as for the custom option, says Segal. While they typically present a seamless look and fit together well, adjustments sometimes are needed for a specific layout, which may bring additional costs. Hinges also are typically concealed, which means a less-tight fit, he says. Home owners should verify specifics so they don’t end up spending so much to adjust them that the final price is close to a custom cabinet. Segal went with a semicustom design to save funds when he remodeled his kitchen. He found that with careful planning he gave up little and gained a quality product that should last years.
▪ Stock cabinets are the equivalent of off-the rack — or shelf — choices made in ready-made sizes, with fewer possibilities to pick among. They’re widely available at big-box stores like Lowe’s (a REALTOR Benefits® Partner), Home Depot, and IKEA. In kitchens with an uncomplicated layout or for home owners who are content with basics that will function well and help lower their budget, stock cabinets can be a good solution. Barbour likes to look first at these options, then have a carpenter add moldings to conceal gaps and lighting. He recommends carefully choosing the best stock boxes available—those from well-crafted wood versus composition or pressed board, which won’t wear as well. It’s also important to have sturdy shelves within — at least three-quarters of an inch thick — that don’t extend longer than 30 to 48 inches to avoid sagging. While Beaubien doesn’t use stock in most kitchen projects, he finds them acceptable for garage storage. They also can be a wise choice for a vacation home where home owners spend less time indoors, Segal says.
Another way to cut costs when going with any of the three choices is to incorporate some open shelves above countertops, which can sometimes accomplish what a closed cabinet could at a quarter of the cost, Barbour says. They also allow home owners to see everything stored at a glance and add instant color and pattern. Of course, the downside is a continual need to keep the contents neat.
The bottom line: Home owners should make their decision based on their home’s price, how long they plan to stay in it, how complicated or simple their kitchen layout is, what they’re storing, and their overall kitchen priorities. If having an expensive restaurant-style range and marble countertops are at the top of their wish list, they may want to scale back their cabinet budget. The decision should suit them rather than the next buyer.
January 2013 | By Barbara Ballinger
$1,795,000 In Alexandria At Belle Haven // 6 Beds // 6 Full Baths – 1 Half Baths
houses at Belle Haven is in Alexandria 22307 New construction in Belle Haven. On track for spring delivery. Still have time to choose your granite tops, wood floor stain and carpet colors. Masterfully crafted and balancing architectural heritage with contemporary brilliance. Great floor … [Read more] 6 beds, 6 full, 1 part baths Home…
Featured From Villamay $889,000 : 7414 Burtonwood Dr, Alexandria 22307 4 beds, 3 full baths Living area: 2,768 sq. ft. Lot size: 12,956 sq. ft. Year built: 1963 Days on Market: 4 See more Featured From Villamay We like to show off our image library stocked with the latest trends in Alexandria's real estate market.
Nesbitt Realty can help you shop for your next home in 22124. Today's spotlight is on this house in Oakton, VA 22124. 6 beds, 3 full baths Lot Size: 60,275 sq.ft. Added: 02/11/17, Last Updated: 02/11/2017 Property Type: Residential Detached for Sale MLS Number: FX9860968 Subdivision: Vale Spring Woods houses at Vale Spring Woods is…
Some of the best housing deals are on high-end homes, many over $1 million. Some of them need TLC or they aren’t in the most-coveted locations. But there are plenty of desirable properties and lots of sellers who are getting impatient. Buyers with cash have the best opportunities. Buyers who need a mortgage should move…
Will Nesbitt stands inside of this model home at the Henry in Old Town Alexandria.The Henry is a brand new condominium development in Old Town Alexandria. Most condos are at the Henry are ready for delivery and construction is nearly complete. The builder's representatives that we know and have worked with at the Henry are professional, knowledgeable, honest and hard-working, but it's their job to represent the builder's interest and it's their job to tell you why the Henry is a great place to live. As buyer's representatives, it's our job to learn as much about your needs as possible to make recommendations that make sense for your specific needs. That's one of the reason I like to take a look at the worst parts of a community first. Every home for sale on the market has advantages, but it's not the advantages of a property that make the sale. Buyers buy homes when they can make peace with the worst parts of living at a particular address.
More about why I'm writing this article?
It may interest the reader to know that I was contacted yesterday by a buyer who is currently living overseas in Switzerland. This potential client is familiar with Northern Virginia but doesn't know exactly where or what to buy just yet. Everyday we help people like this find homes in Alexandria and Northern Virginia. For their benefit I'm going to put together a few opinions and facts about the types of homes that most interest them.
This particular buyer is looking for brand-new construction in Old Town Alexandria. At a start hat criteria makes a very short list. This is because brand-new construction is not common in an area that is one of the oldest and most historic settlements in Northern Virginia. The list of developments that are under construction or just completed includes the Henry, Old Town Commons, the Oronoco, and 900 N. Washington. I am also recommending that this buyer take a look at the Eclipse (nearby in Crystal City), Potomac Yard (just north of Old Town) and the Carlyle District (which if not new, is nearly new).
As time permits I'm going to make public some of the thoughts I'm going to share with this client, in the hopes that it will not only benefit this client but others who might be looking for similar opportunities.
One can find glowing details about the amenities and features of the Henry, as well as information about models that are on sale now elsewhere on this site or by talking to builder's representatives. But what people really want to know is "what's the catch?". My clients often say, "Tell me the worst things about this purchase and I'll make the decision about whether this is a good buy for me or not."
So, I'm providing this is a critical look at the Henry and the value of what a buyer might find at the Henry.
Plymouth Haven is near the terminus of Fort Hunt Road at the Potomac River.
Plymouth Road starts and ends on Fort Hunt Road. This is because it cuts the corner where Fort Hunt Road turns from Vernon View toward the GW Parkway at Fort Hunt Park. Plymouth Road defines the Fairfax County neighborhood of Plymouth Haven. Although many Plymouth Haven homes sport extensive refurbishments and renovations, the original homes of Plymouth Haven are generally modest upper-middle-class homes from the middle of the last century. The desirability of the Plymouth Haven neighborhood and the large lots found there have encouraged builders to knock-down many homes and to build large luxury homes.
Turnberry Tower is currently the number one, top selling condominium in the DC area for the second consecutive year in a row. The units here have extravagant floor plans including private elevator entry and 9-11 ft. covered ceilings. The floor to ceiling glass walls and the expansive balconies provide sweeping views. Turnberry Towers features the ultimate 24 hour concierge, valet, and security services. Inside there is a fitness center, a indoor swimming pool, a theater / screening room, a social room, and a cafe.
South Florida based developer Turnberry, Ltd., one of the county's leading real estate development firms, created this ultra luxurious 26 story tower. It is located in Arlington County's emerging downtown just across the Key Bridge from Georgetown. The residences here are all constructed with the finest material and an unparalleled attention to detail including: Snaidero Italian cabinetry, exotic granite countertops, Miele European cooking appliances, Sub-zero refrigeration, classic marble baths, jacuzzi hydrotherapy tubs, Dornbracht plumbing and Valli & Valli door lock sets are just a few of the standard amenities that await Turnberry Tower residences.
Turnberry Tower illuminating high class luxury living
Surrounded by the hustle and bustle of the city and all it has to offer are several high end neighborhoods that would make many heads spin once or twice. If you drive around McLean for a while it is obvious that you are in the midst of luxury and luxury at its best. I can imagine that there are people who move here for a number of reasons but one thing Northern Virginia is known for is housing those that have quite a bit of money to spend. Of course with the government being responsible for a majority of the jobs here and having several professional sports teams in the area, there are sure to be some big spenders.
If you are in the market for a luxury home, make sure McLean is on your list of places to check out. Going down route 7 there is a parade of mansions that ling the long road and it is quite the site to see. I saw one property that looked like it had several houses attached to it, until I realized it was all one house. For those of you who may not be in the market, its still a beautiful site to see. It is simply amazing to view some fo the architecture and design work that has been put into building these homes.
Uber-rich Americans are spending again, on everything from fancy cars to second homes.
"Personal embracement of luxury is now back to (pre-recession) 2007 levels," marketing specialist Jim Taylor, author of “Selling to the New Elite,” told USA Today. "We're seeing that in cars, private jet usage and finally, in high-end real estate. There's a real change in the way people feel about money. They're making purchases they put off during the recession."
For example, second-home markets are on the rise: Vacation homes in Cape Cod, Mass., for example, increased 9 percent in 2010. In Palm Beach, Fla., home sales increased nearly 40 percent, and in Hilton Head, S.C., home sales were up nearly 14 percent. Luxury home sales in Southern California are also beginning to pick up, analysts say.
"We're starting to see movement," says Madison Hildebrand, a real estate professional who specializes in selling homes in Southern California, and also star of the Bravo's “Million Dollar Listing” reality show. "People are more confident."
Analysts also note that when the wealthy start buying, it often has a trickle down effect among middle and upper-income shoppers too.
Source: “For the Wealthy, Luxury is Back,” USA Today (Feb. 20, 2011)
$1,795,000 In Alexandria At Belle Haven // 6 Beds // 6 Full Baths – 1 Half Baths
houses at Belle Haven is in Alexandria 22307 New construction in Belle Haven. On track for spring delivery. Still have time to choose your granite tops, wood floor stain and carpet colors. Masterfully crafted and balancing architectural heritage with contemporary brilliance. Great floor … [Read more] 6 beds, 6 full, 1 part baths Home…
Featured From Villamay $889,000 : 7414 Burtonwood Dr, Alexandria 22307 4 beds, 3 full baths Living area: 2,768 sq. ft. Lot size: 12,956 sq. ft. Year built: 1963 Days on Market: 4 See more Featured From Villamay We like to show off our image library stocked with the latest trends in Alexandria's real estate market.
Nesbitt Realty can help you shop for your next home in 22124. Today's spotlight is on this house in Oakton, VA 22124. 6 beds, 3 full baths Lot Size: 60,275 sq.ft. Added: 02/11/17, Last Updated: 02/11/2017 Property Type: Residential Detached for Sale MLS Number: FX9860968 Subdivision: Vale Spring Woods houses at Vale Spring Woods is…
Some of the best housing deals are on high-end homes, many over $1 million. Some of them need TLC or they aren’t in the most-coveted locations. But there are plenty of desirable properties and lots of sellers who are getting impatient. Buyers with cash have the best opportunities. Buyers who need a mortgage should move…