Wealthy Spending Again on Luxury Homes

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Two home sales, each exceeding $45 million set U.S. records for 2010

In the recent economic downturn, the wealthy experienced substantial drops in their portfolios and felt the uncertainty of the global economic condition

In April, Texas Energy executive Kelcy Warren purchased a Colorado property for $46.5 million. Hot on the heels of this transaction, an unnamed Indonesian buyer contracted in May for a 48,000 square foot Bel-Air mansion for an amount reported to be close to $50 million. If the Los Angeles transaction closes, it will bump the Colorado sale to set the newest record for this year’s priciest residential transaction. Some brokers speculate that these transactions illustrate a return of the wealthy to the upper-tier housing market.

Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing – which trains agents in the luxury market, reports that, “Institute members from many markets across the country are telling us that buyers at the top of the market are looking again and that many are cash buyers. We believe this anecdotal evidence may herald the return of the very affluent to the national residential market.”

But is this the case in our local market? Institute member and Luxury Lifestyle Homes of Southwest Florida (http://www.LuxuryLifeStyleHomes.com) founder, real estate broker Robin Speronis reports that the upper-tier market in Naples, Florida is experiencing an up-tick. “My weekly Market Update Report for Naples, Florida for the week ending May 15, 2010, shows 30 new MLS listings in the most expensive 25% of this real estate market. During the same period and in the same market segment, this real estate market absorbed 60 of these properties. What’s more, my newly launched Naples Luxury Home Search Personal Website Program, has received dozens of inquires in it’s first month of operation.”

“In the recent economic downturn, the wealthy experienced substantial drops in their portfolios and felt the uncertainty of the global economic condition,” said Moore-Moore. “As a result, the luxury market shrank across all product and service categories, including housing. In addition, many wealthy converted investments to cash and have been watching and waiting on the investment sidelines. Today, many are looking at U.S. home values and deciding to buy another residence as both a lifestyle decision and a portfolio play. Although the current turmoil in global economies is a wild card, which could change things, we think the luxury home buyer is re-entering many markets and shopping for fabulous homes as smart investments.”

For more information please visit http://www.LuxuryLifeStyleHomes.com

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