Raleigh, North Carolina.  During the fall Parade of Homes there will be from 350 to 375 new homes on display.  The homes that get the most traffic, by far, are those that are the most expensive.  I guess it’s a matter of wanting to see how the “other half” lives.  Also, it doesn’t hurt to dream.  With this in mind, what do we know about luxury home buyers?  The 2007 Luxury Home Council Survey of Luxury Housing Market Trends sheds some interesting light on this question.

*  The average listing price for luxury homes in nearly $900,000.   *The largest percentage of luxury home buyers fall into the 40-50 age group (48%) followed by the 50-65 age group (44%).    * The most common occupation of luxury home buyers is that of an entrepreneur (51%), next is the large business exec. (46%) and in third place are medical doctors (24%).  * The typical luxury home buyer puts down an amount equal to just over one-third of the purchase price.  The median amount financed by all buyers in 2006 was 91% of the purchase price.  * Luxury home buyers search for home having at least 3500-4000 square feet, 4-5 bedrooms and 3-4 bathrooms.  * The average luxury home buyer spends 11 weeks looking for a home and views 12 homes.  * The most popular amenities include gourmet kitchens (95%), master bedroom suites (86%), specialty construction items (66%),  high end appliance package (64%), home office suites (58%), an home theatre rooms (55%).  * The number one service affluent home buyers want from their real estate agent/broker is help in finding a home (86%), help in managing the transaction (56%), and expert counsel during a negotiation (24%). 

If you are looking for help in finding or building a luxury home call me or send me an email to arrange an appointment.

John Fish (919) 696-3474   Email: marvmax@mindspring.com   www.JohnFish.com   

Baby Boomers.  A survey done for the National Association of Realtors reveals a great deal about baby-boomers (people born between 1946 and 1964):  * There are about 78 million of them   * Of those surveyed most indicated they would not retire until they reached 70 and 27% said they would never retire   * Most Boomers live in two-income households.  Their median income is $64,700 which is 31% higher thatn the median for all households.   * More than nine out of ten Boomers who earn $100,000 or more are home owners.  * Of the middle-income Boomers home equity represents almost half of their net worth.   * Of those surveyed 19% are renters.   * On the short end 37% of the Boomers indicated they were just making ends meet and 17% were having financial difficulty.   * 25% of the Boomers own several types of real estate: 13% own land, 8% own rental property, 7% a vacation or seasonally occupied property, 2% commercial real estate and 3% some other type of real estate.   * 40% of those responding intend to convert their vacation home into a primary residence at retirement.   * Boomers own 57% of all vacation/seasonal homes and 58% of the rental properties.  * 3.5 million Boomer households moved during the last year.   * 75% of the Boomers surveyed said they were not financially ready for retirement and were concerned about their ability to retire.

For those you who think you are too young to think about facts like these or that you have “plenty of time” to get ready for retirement you better think again!  Has most real wealth come from investing in real estate - yes!  More about this in later posts.

John Fish (919) 696-3474   email: marvmax@mindspring.com   Website: www.JohnFish.com