As affluent buyers around the world search for safe-haven investments, prices in several property markets continue to rise.Edward de Mallet Morgan, Associate Partner at Knight Frank, talks to Elite Traveler about the trends in the global luxury real estate market and tells us where his clients are looking to invest.With a growing number of affluent individuals around the world, several real estate markets around the globe are seeing a rise in the demand, and prices of, luxury residential properties.
Homebuilder Robb Beville is a rare breed in Las Vegas: He works for a local company.The valley’s home construction market is dominated by out-of-state, publicly traded builders that are worth billions of dollars, employ thousands of people and sell tens of thousands of homes nationwide each year. They include Miami’s Lennar Corp., Texas’ D.R. Horton and Los Angeles’ KB Home.Beville, president of Las Vegas-based Harmony Homes, has 55 employees and sells about 400 homes a year.Harmony is one of a few local, privately held builders with sizable market share. Las Vegas used to have more of them, but they got wiped out by the recession.
To some degree, every home is the owner’s castle, but these homes take it a step further. With stone walls, turrets and even a guard shack, these residences would fit into medieval Europe, or perhaps a Harry Potter novel.In the ivy-covered league1 Castle Rd, Piermont, NYFor sale: $5.5 million
When youre writing out the holiday shopping list, maybe its time to put your name on it and a home as the gift. If youve been considering buying a home, here are a few reasons why shopping for one during the holiday season can benefit you.Yes, it may involve you really prioritizing your time; the holiday season is a busy time. But if you can make time to house-hunt and you have already been pre-approved so you know how much home you can afford, then this could be a very good experience. And it may lead you to a new home in time for Christmas!Like many businesses, the holiday season can cause things to slow way down. Thats often the case for real estate. However, that doesnt mean you wont find eager sellers hoping youll make an offer on their homes. Even though there are parties, kids social activities and end-of-the-year work commitments, real estate sellers are still ready to let you step inside their homes to see if youll find one is a good fit.
What are the best real estate investing strategies for 2014?For those trying to close real estate deals during the holiday season, 2014 can seem a long way off. A lot needs to be done between now and the New Year. However, experienced real estate investing pros not only understand the importance of maintaining an advantage, but get that winning in 2014 involves keeping up with the trends. Neglecting to realize the best real estate investing strategies for the end of the year and into 2014 can be devastating to any business.Many investors, particularly those that are new to the industry, find themselves wondering what will help them prevail in the next year. With so many options and changing market conditions, it is easy to get confused. Is wholesaling, rehabbing, or something else the best real estate investing strategy for 2014?
5 real estate game changers evolving now:1. Huge BetsTrophy properties are back in and huge bets are being made by spec builders looking to serve those chasing them. Florida builders are selling spec homes for tens of millions of dollars, a 1 bedroom property just sold for over $20 million in California and two thirty something year old developers are currently building a $322 million spec home in London.2. Private Lending Becomes MainstreamBetween higher taxes, poor returns elsewhere, a need for solid income investments and surging confidence in the housing market private mortgage lending is becoming mainstream. It will no longer be a mission to sell the idea to affluent investors but getting an opportunity in front of them which will serve their needs and egos.
According to Redfin, as the holiday season nears, the housing market is showing signs of stability and even resilience through the seasonal slowdown. Redfin has more:The 19-market median sales price is up 15.3 percent year-over-year at $327,302, Redfin said.Month-over-month prices ticked down slightly with a 0.9 percent decrease. Home sales were up 0.6 percent over last year’s very strong October with 74,363 homes sold this month. Inventory continues to be the low point in the housing market, down 10.4 percent over last year, and down 5.5 percent from last month. As we said last week, shifting market conditions, such as reduced competition and falling mortgage rates, likely sustained demand in October.
The real estate market will continue its road to recovery in 2014, with home prices rising 6 percent and mortgage rates hitting 5.4 percent. In addition, demand is predicted to plateau, all according to Lawrence Yun, chief economist and senior vice president of Research for the National Association of REALTORS®, who presented his 2014 market forecast during last week’s REALTORS® Conference and Expo.Other factors aim to set the market back on the right path. Although there could be a possible negative impact due to rising mortgage rates, job creation and loosening underwriting standards should balance out 2014’s sales volume.“There were two million jobs created in the past few months and we’ll see the same next year,” says Yun. “These people could potentially enter the market.”
For quite a number of years, these Las Vegas residents lived in a hotel right off the Strip. So when it came time to build their own home, they had a different point of view than most homeowners.Forget a traditional three-bedroom, two-bath home. These homeowners wanted their custom residence to look like a resort.ZillowThe pool holds center court in this Las Vegas resort-style home.\”If for any reason it looked like a house, [the owner said] he was doing something wrong,\” explained listing agent Paula Burlison of Coldwell Banker Premier Realty.That means the home has no hallways — he didn’t want it to look like a \”mousetrap,\” Burlison says.Rather, the house is designed like a wheel, with eight rooms jutting out like spokes from the main room. An enormous pool with a 20-foot stone water feature holds center court in the home. Above, a 15-foot skylight is framed by a blue tile mosaic.
Land and home sales keep climbing in the largest master-planned community in the Las Vegas Valley.Summerlin developer Howard Hughes Corp. said today it sold 76.5 acres of land to homebuilders for $29.7 million during the three months ending Sept. 30.That’s almost four times better than the same period last year, when it sold 21.7 acres for $7.7 million.Meanwhile, builders sold 153 new homes in Summerlin in the third quarter, up 20 percent from 128 sales a year earlier.
After soaring fast and crashing hard, Las Vegas home values are recovering at one of the fastest rates nationally.But this market isnt alone: Several other cities that experienced housing bubbles and economic destruction when the bubble burst are also leading the pack in real estate recovery.In Sacramento, home values climbed 34 percent over the past year, the fastest rate among major metropolitan areas, according to housing data firm Zillow. Las Vegas came in second at 33 percent, followed by Riverside, Calif., at 32 percent.Nationally, home values climbed just 6 percent during the same period.
Housing Leads Construction Industry to Moderate Growth in 2014, According to McGraw Hill ConstructionDodge Outlook Report Predicts Rise in Construction Starts for Housing, Commercial & Manufacturing Building Sectors; Stability for Institutional Building After Lengthy Decline; Weaker Activity for Public Works & Electric UtilitiesWashington, D.C. – October 25, 2013 – McGraw Hill Construction http://www.construction.com/, part of McGraw Hill Financial NYSE: MHFI, today released its 2014 Dodge Construction Outlook, a mainstay in construction industry forecasting and business planning. The report predicts that total U.S. construction starts for 2014 will rise 9% to $555.3 billion, higher than the 5% increase to $508 billion estimated for 2013.“We see 2014 as another year of measured expansion for the construction industry,” said Robert Murray, McGraw Hill Construction’s vice president of Economic Affairs. “Against the backdrop of elevated uncertainty and federal spending cutbacks, the construction industry should still benefit from several positive factors going into 2014. Job growth, while sluggish, is still taking place. Interest rates remain very low by historical standards, and in the near term the Federal Reserve is likely to take the necessary steps to keep them low. The bank lending environment is showing improvement in terms of both lending standards and the volume of loans. And, the improving fiscal posture of states and localities will help to offset some of the negative impact from decreased federal funding,” said Murray.
For the second consecutive week, fixed-rate mortgages declined, lowering borrowing costs and helping to alleviate some signs of softening in the housing market, according to Freddie Macs weekly mortgage market report. The 30-year fixed-rate mortgage averaged 4.10 percent this week, its lowest average since June. The Federal Reserve announced this week after its monetary policy meeting that it would be keeping its $85 billion per month bond-buying program in place for now, which should help sustain low mortgage rates in the near future, says Frank Nothaft, Freddie Mac’s chief economist. The Fed also noted an improvement in economic activity but a slowing in the housing market recovery in recent months as unemployment remains high, Nothaft notes. Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 31:
NAR says the biggest factors influencing neighborhood choice were quality of the neighborhood, cited by 63 percent of buyers; convenience to jobs, 48 percent; overall affordability of homes, 40 percent; and convenience to family and friends, 38 percent.
Other factors with relatively high responses included quality of the school district, 29 percent; neighborhood design, 28 percent; convenience to shopping, 26 percent; convenience to schools, 22 percent; and convenience to entertainment or leisure activities, 20 percent.
Commuting costs remain a significant factor, with 73 percent of buyers saying transportation costs were important in the purchase decision process.“Green” features also played a role, with 85 percent saying heating and cooling costs were important, and 68 percent wanting energy efficient appliances.
The Las Vegas condo market continues to improve with the projects of Mandarin, Veer, The Martin, One Queensridge Place and Mira Villa all selling beyond what we expected at the beginning of the year.
We are also seeing some new and exciting projects planned which should boost visitor traffic and create new jobs. Below is a partial list of new developments:
Zappos moved downtown and their CEO Tony Hsieh has created the Downtown Project which will allocate $350 million to aid in the revitalization of Downtown Las Vegas. This will ultimately benefit the Soho, Newport, Juhl and Ogden condo buildings. More information can be found at:http://downtownproject.com/
Additional Projects Currently Open Now Or Under Development:
Downtown Grand is now open (formerly Lady Luck site)
Genting Group’s Resorts World across from Wynn/Encore (approx. $5b)
The LINQ, an open-air retail, dining and entertainment district, anchored by the world’s tallest observation wheel, known as the High Roller.
The remodel of Bills Gambling Hall on Flamingo/LVBD
SLS Las Vegas (former Sahara Hotel)
New York-New York/Monte Carlo Entertainment District and 20,000 seat arena.
Shops at Summerlin
Tivoli Village in Summerlin (Phase 2) Next to One Queensridge Place
Various Condo Deals Currently Being Offered:
Up to 18 months of paid HOA’s on developer condos at Turnberry Towers.
Vdara has a 43rd floor 2bd at $899k or $437/sf For info, Click Here
Mandarin has only one remaining developer Penthouse (never lived in) at $3.495m
The Martin is offering $30k discounts on select residences in November.
Palms Place has strip view studio residences starting at $174k
Condos Stats for Q3
Allure Las Vegas
Number of Properties Sold -5
Avg Sale Price – $169,080
Avg SP/SqFt- $182.57
Avg Rent Price-$1595
Avg Rent PPSF-1.36
Avg Rental Days on Market-38
For residences currently available please visit Allure
Number of Properties Sold -16
Avg Sale Price -$1,202,309.69
Avg SP/SqFt-$571.38 (Many were Grey Shell/unfinished)
Avg Rent Price-$4,023
Avg Rent PPSF-$2.63
Avg Rental Days on Market-48
For residences currently available please visit: Mandarin
Number of Properties Sold – 25
Avg Sale Price -$491,618.72
Avg SP/SqFt- $349.64
Avg Rent Price- $2183
Avg Rent PPSF Avg -$1.87
Avg Rental Days on Market- 41
For residences currently available please visit: Martin
Number of Properties Sold -3
Avg Sale Price – $454,538
Avg SP/SqFt- $154.96
Avg Rent Price- $2719
Avg Rent PPSF- $1.00
Avg Rental Days on Market-71
For residences currently available please visit: Metropolis
Number of Properties Sold – 25
Avg Sale Price -$226,476.96
Avg Rent Price-$1665
Avg Rent PPSF -$2.47
Avg Rental Days on Market- 33
For residences currently available please visit: MGM Signature
Number of Properties Sold -25
Avg Sale Price -$532,840
Avg Rent Price-$3100
Avg Rent PPSF-$1.24
Avg Rental Days on Market-22
For residences currently available please visit: Mira Villa
Number of Properties Sold -1
Avg Sale Price -$188,000
Avg SP/SqFt- $177.53
Avg Rent Price- $1760
Avg Rent PPSF – $1.33
Avg Rental Days on Market -29
For residences currently available please visit: Newport Lofts
One Queensridge Place
Number of Properties Sold -21
Avg Sale Price -$1,293,712.33
Avg SP/SqFt – $400.91
Avg Rent Price- $6459
Avg Rent PPSF -$2.04
Avg Rental Days on Market- 40
For residences currently available please visit: OQR
Number of Properties Sold -6
Avg Sale Price -$296,500
Avg SP/SqFt – $398
Avg Rent Price- $1838
Avg Rent PPSF – $2.42
Avg Days on Market- 85
For residences currently available please visit: Palms Place
Number of Properties Sold – 11
Avg Sale Price – $402,889.45
Avg SP/SqFt – $251.84
Avg Rent Price – $2092
Avg Rent PPSF -$1.65
Avg Rental Days on Market – 48
For residences currently available please visit: Panorama Towers
Number of Properties Sold -1
Avg Sale Price -$960,000
Avg SP/SqFt – $467
Avg Rent Price – 0
Avg Rent PPSF – 0
Avg Rental Days on Market – 0
For residences currently available please visit: Park Towers
Sky Las Vegas
Number of Properties Sold – 10
Avg Sale Price – $212,428.50
Avg SP/SqFt – $189.20
Avg Rent Price – $1835
Avg Rent PPSF – $1.58
Avg Rental Days on Market – 50
For residences currently available please visit: Sky Las Vegas
Number of Properties Sold – 16
Avg Sale Price -$278,906.25
Avg SP/SqFt – $478.56
Avg Rent Price – 0
Avg Rent PPSF – 0
Avg Rental Days on Market – 0
For residences currently available please visit: Trump
Number of Properties Sold -10
Avg Sale Price – $558,630.00
Avg SP/SqFt -$242.71
Avg Rent Price -$2477
Avg Rent PPSF – $1.26
Avg Rental Days on Market – 77
Stirling club has been sold but no updates yet on when it will re-open****
For residences currently available please visit: Turnberry Place
Number of Properties Sold – 18
Avg Sale Price – $380,803.39
Avg SP/SqFt – $288.90
Avg Rent Price – $1999
Avg Rent PPSF – $1.74
Avg Rental Days on Market – 70
For residences currently available please visit: Turnberry Towers
Number of Properties Sold – 23
Avg Sale Price – $419,861.48
Avg SP/SqFt – $470.27
Avg Rent Price – $1878
Avg Rent PPSF – $2.19
Avg Rental Days on Market – 38
For residences currently available please visit: Veer Towers
Data from tax records and deemed reliable but not guaranteed ****
Our team will be opening an office in Summerlin in the first quarter of 2014 so if we can assit in condo or subdivision sales/managment, please let us know.
Anthony J. Phillips
Luxury Real Estate Advisors
Luxury Real Estate Management
3960 Howard Hughes Parkway Suite 500, Las Vegas, NV 89169
P: 702.482.8885 | F: 702-302-4486
MyLvCondoSales.com | MyLvHomeSales.com
High-rise Blog MyLvCondos.com
Americans are increasingly showing their desires for walkable neighborhoods that combine a mix of homes and stores. In fact, a new survey shows that the least popular neighborhood is a suburban one with just houses in it. Sixty percent of Americans surveyed say they favor neighborhoods with a mix of houses and stores and other businesses that are easy to walk to over neighborhoods that require greater driving among home, work, and recreation, according to the National Association of REALTORS®’ 2013 Community Preference Survey of 1,500 Americans. “Although there is no one-size-fits-all approach, smart growth is typically characterized by mixed-use development, higher densities, and pedestrian-friendly streets that accommodate a wide diversity of transportation modes,” says NAR President Gary Thomas. “Growth patterns, economic development, and quality-of-life issues are inextricably linked to the success of communities and residents.”
Rhetorical question? Perhaps, for surely everyone does. But increasingly, successful people are taking a harder look at residency. The notion that a moneyed Californian would even consider it provokes outrage among some. Remember the public reaction to Phil Mickelson’s remarks?The question whether “making it” in California requires staying and paying may be a debate with no answer. Yet the tax laws recognize it has always occurred state to state and even country to country. Moreover, the income tax is uniformly an annual reckoning. This fundamental fact about income taxes itself belies the notion that one cannot earn, pay tax and leave before paying more.
Rising home prices and short supply have investors setting their sights on a new real estate play. Home flipping, loosely defined as buying and selling the same home within six months, fell out of favor during the housing recession, as falling prices left no prospect for profit. Now the market is on the rise again, and flippers are testing the waters, but the game has changed. This time, high rollers are taking the lead, backed by private-equity cash. The million-dollar flip is a high-risk, high-reward play, with investors catering to the latest architectural whims of the highest-end buyers.
Starwood Property Trust will spin-off its single-family residential business into a real estate investment trust, as the company looks to become one of the largest publicly-traded single-family property owners. The new REIT, Starwood Waypoint Residential Trust, will be listed on the New York Stock Exchange and trade under the ticker symbol \”SWAY.\”As of September 30, 2013,
Starwoods single-family residential portfolio, which will be owned by the new REIT, included approximately 5,817 properties, totaling approximately $750 million in investment capital, the company said.The new REITs portfolio will be managed by Sway Management, a subsidiary of Starwood Capital Group, which is merging with Waypoint Real Estate Group. No details were announced for the Waypoint transaction.Barry Sternlicht, “Were buying $50 million to $60 million homes a month and the baby is getting a little large — like Moby-Dick,” Starwood chief executive Barry Sternlicht told Bloomberg. “With Waypoint, well have best-in-class management that has capability proven to get to scale.”
The Internet has become the first place to look for real estate. In 2007, more than 80% of home buyers actively used the Internet as part of their research process before buying real estate and before contacting an agent. This proportion keeps increasing, making online real estate a very attractive market. However, competition in this space is very fierce. Most real estate agents and companies have already built their own sites, and invest heavily in online marketing. Companies that provide a differentiated online service may have a chance to win this huge market. Online real estate company Trulia NYSE: TRLA uses interactive maps and strategic acquisitions to capture market share. Competitor Zillow NASDAQ: Z , on the other hand, emphasizes its \”hidden inventory.\” The company has rich information regarding pre-foreclosures and homes under construction. Then theres Move NASDAQ: MOVE , owner of Realtor.com, a huge database-driven website with more than 94 million properties. Which of these three companies has a bigger chance to win the promising real estate online market?